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PUBLISHED IN LONDON AND FRANKFURT 


Monday March 8 1982 


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COWTIWOITAL SELLING PRICES: AUSTRIA 


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NEWS SUMMARY 




BUSINESS 


Labour, 
TUC set 


9 unions 
agree 


for state on BSC 
sales deal plans 


Opec leaders agree 
cut in oil output 
to maintain prices 

BY RICHARD JOHNS IN LONDON AND PATRICK COCK BURN IN DUBAI 


The Labour Party, and the TUC 
seezn set to agree on a formula 
for reaaflonaHsaUon to prevent 
shareholders wiring profits 
when a future Labour Govern- 
ment bought bach state assets 
sold by the Conservatives. 

The plan, which would 'pro- 
vide compensation, could 
involve shareholders ..in - big 
Josses if the market price bad 
risen since the assets were sold. 
Baefc Page; Attempt to reopen 
Militant question. Page 6 ' 

Oil tanker sinks ... 

Nine were feared dead when a 
44,881-tonne oil tanker sank, 
after an explosion about 750 
males east of Bermuda. The 
other 16 crew of the U.S.- regis- 
tered Golden Dolphin., were 
rescued. 


• BSC has reached agreement 
on new working practices with 
nine of the 10 unions at its 
Jtavenscraig, Scotland, works. 
But it faces a potentially explo- 
sive situation today when it 
attempts to Introduce the new 
measures without the approval 
of the hipest union, the Iron 
and Steel Trades Confederation. 
Page 6 

• DOCKERS LEADERS called 
for a 24-hour national strike in 
protest at reorganisation plans 
for the National Dock Labour 
Board. Bade Page 

• EQUITY’S decision to apply 
for .Government funds to pay 
for postal ballots threatens 
TUCTs atempted unity against 
employment legislation. Back 
Page 


Gulf peace hopes • 

Hopes of an end to the Gulf Mi 
war were raised when an de 
Is lami c peace mission reported de 
“a serious and positive” th 
response by Iraq to its mi 
proposals. th 

Reagan address S 

Ronald Reagan will be the first 
U.S. President to address a joint P £ 
session of parliament when he ^ 
visits Britain in June. He will fa - 
stay at Windsor Castle for two F* 
nights. £ 

Gfemp appeal h 

Polish Roman Catholic primate th 
Archbishop Josef Giemp urged th 
all elements of Polish society fn 
to make conciliatory efforts. : r 
Page 2 

Pope'spiifip-image 

The Pope will visit the Fatima, 
shrine .in -Portugal on May. 13, 
first anniversary of the attack 
on his life, to give thanks for 
his escape. 

Seal cull opens 

Canada's seal cull began off L 
Quebec's Magdalen Islands. The v- 
first day’s kill was put at 400- i 
600 pups. 

Reactor shutdown 

A reactor at the Oconee nuclear 
station. South - Carolina, was 
shut after a leak was found in 
a steam- generator tube. Duke 
Power, the operators, said no ‘ 
radioactive material was 
released. L 


• THE BELGIAN franc fell 
sharply within the European 
Monetary System last week 
despite its recent 8} per cent 
devaluation. The attraction of 
the franc was further under- 
mined by a one point cut in 
the Belgian discount rate to 13 
per cent on Wednesday. The 
Dutch guilder rose to the top 
of the system, replacing the 
Danish krone, with Dutch 
interest rates unlikely to 
fall before a cut in West Ger- 
man rates. The latter were 
left unchanged after the 
bank’s fortnightly meeting on 
Thursday and the D-mark . re- 
mained the weakest member of 
the system followed closely by 
the Italian lira and. the Belgian 
franc. v 

EBIS Iflarcli 5,1982} 

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Jockey dies 

Jockey John Thome, 55, died 

after falling at a weekend point- 

to-point meeting izi. Oxfordshire. 

Davis cup defeat 

Itriy beat Britain 3—2 in their 
first round Davis Cup tie in 
Rome. 

Tents for Tonga 

Britain is sending 14 tons of 
tents — worth about £100,000 
— <o tydonejut Tonga.. 

Egypt showboat 

Egypt: displayed -for the first 
time a boat believed to be the 
world’s oldest It was buried 
near the Great Pyramid at least 
47 centuries ago. 

Steel appeal 

liberal leader David Steel was 
voted best-dressed.male MP in a 
poll for tailors Mr Harry. 

Briefly . - - 

Three died when their car hit 
a lamp-post on the M8 near 
Glasgow Airport . 

Po thaler was rescued after being 
trapped for five hours near 

Hubberhoime, North Yorkshire. 
Guatemalans voted in presiden- 
tial and congressional elections. 

FINANCIAL TIMES 

We apologise to readers who did 
not receive a copy of Saturday s 
Financial Times. The shortage 
was due to production difficul- 
ties. 


The chart shows the two constraints 
on European Monetary System exchange 
rates. The upper grid based on the 
weakest currency in the system defines 
the cross rales from which no currency 
(except the Ural may mow more than 
2*4 per 'cent. The lower chart gives 
each currency's divergence from the 
“ central rate " against the European 
Currency Unit (ECU) itself a basket 
of European currencies. 

• Id is increasing its coal con- 
sumption 50 per cent and may 
boost it to more than 1 m tonnes, 
four times the present level, to 
cut its rising oil and gas haHs. 
Page 5 

• HEAVY LOBBY proposals to 
go before Parliament soon are 
likely to set an upper legal limit 
of 38 tonnes, instead of the 40 
tonnes proposed by the White 
Paper. Page 6 

• JAPAN is being used as a 
scapegoat by Western countries 
for their failed economic and 
trade policies according to the 
director of the General Agree- 
ment on Tariffs and Trade, Mr 
Arthur Dunkel. Page 3 

• SPONGE IRON plant costing 
$45 0m (£246m) is to be bui&t 
by a consortium of eight 
Japanese companies, led by 
Nippon Steel, and Hi com, the 
Malaysian Government’s Heavy 
Industries Corporation. Page 3 

• TADDALE INVESTMENTS 
has sold Platonoff and Harris, 
tie specialist joinery company, 
to Dihamai Holdings, the former 
tea group, tor 60 per cent 
f 1.1 6m) of Dbamai shares. The 
new group will be called P H 
Industrials. Page 16 


CONTENTS 


Recession*' upturn. • that an a comparison o 

p 14 unemployment 15 

hasn tcome-..^. ■ Wcek 1 j n the courts: sounds 

SSa AffMre ‘ ..“ from the Portuguese . -U 


gss ass a 

Management: upstart down fcrael 

Umbarff sinuej' Brittaa Warwickshire 


Art. » 

Appokrtmwta 

Ban Rita £ 

Building Notts * 

Bun'min*. Diary ... * 

Company Nwi ... ™ 

Crossword 

EnttArift* Guido ... « 

EuramukMi ]Z 

Flnsncisl Oiliy — 

ttrtl. Cap. MsikBtdT?. 1* 


15 ifiSrco- 

25 tw 

A Labour . 
9 Leader* . 
8 Latter* - 

It Lombard 


Management 12 

Man & Motto ra ... 1* 

Monoy & Exchnga. » 

Ovonsas Nawtt ... 2 

PartiMwnttty Dtaty ■ ® 

Racing 11 


15 Share information 28 
30 Technology 1° 

6 TV and Radio ...... 11 

14 UK Nows 4, 6.6 

15 Unit Trusts " 

15 7 

12 World Econ. InrL 3 
14 World Stock Mktt- 23 
28 WWW THKta . 3 

2 pflOSPECTUS ADS. 

11 pj|. mdus trials —24 25 


LEADING members of the 
Organisation of Petroleum 
Exporting Countries have 
agreed to reduce their collective 
output from about 20m barrels 
a day to 18.5m b/d in an effort 
to Toamfain a basic reference 
price of $34 a barrel. 

An emergency session of 
Opec bas been scheduled for 
Vienna on March 19 on the 
basis of an understanding to 
this effect reached in Doha, 
Qatar, at the weekend where 
the oil ministers of the seven 
Arab member states held talks 
with their Indonesian and 
Nigerian counterparts. 

Central to the accord is a 
Saudi decision to lower the ceil- 
ing on production from its main 
fields from 8.5m b/d to 7.5m 
b/d. But it was not blear what 
immediate effect the restriction 
would have on the oil glut 

Output of the Arabian 
American Oil. Company had 
already dropped to about 7 An 
b/d towards the end of last 
month, according to well- 
informed reports. Shiekh 
Ahmed Zaki Yamani, Saudi 
Minister of Oik had puzzled 
industry analysts by saying that 
his country’s production had 


averaged just over 8.5m b/d in 
both January and February. 

There was no clear indica- 
tion as to which other member 
states of Opec would reduce 
production. The United Arab 
Emirates, Indonesia and Vene- 
zuela had been considered the 
most likely volunteers. But Dr 
Mans al Otaiba, UAE Minister 
of Oil, was quoted yesterday as 
saying his Government did' not 
intend to ‘cut its rate of 1.4m 
b/d. 

Mr Tayeh AbdutKarim, Iraqi 
Minister of Oil. revealed that 
Iran's allocation had In fact been 
increased. 

Nevertheless he told a press 
conference after the Doha meet- 
ing -that he and his colleagues 
expected pressures on prices to 
ease in two or three months. 

He also accused oil companies 
of flooding the market by 4m 
b/d, in the process pushing 
down demand for O pec’s output 

Dr Otaiba voiced the same 
opinion, saying: 14 1 hope the oil 
companies will stop their de- 
stocking. Otherwise Opec will 
not forgive them.” 

Sheikh Yamani said that the 
Saudi decision on a lower import 
ceiling had been taken two 
weeks ago following a visit to 
the Kingdom by Sheikh All 


Khalifa al- Sabah, Kuwaiti 
Minis ter of Oil. His expectation 
had been that market forces 
would have led to a drop is his 
country’s output but M unfor- 
tunately it did not work on 
Saudi Arabia.” 

He expressed confidence in 
maintaining a $34 reference 
price and doubted the need to 
hold an extraordinary confer- 
ence. Sheikh Yamani also des- 
cribed the fall In spot price for 
non-contract oil as “just a 
temporary thing in tbe mar ket.” 

Opec is showing dogged re- 
luctance to accept market 
factors which led the British 
National Oil Corporation last 
week to cut the price for North 
Sea crude by $4 per barrel, from 
$35 to S3L On this basts the 
Opec reference should be S2S.50- 
$29, according to industry 
calculations. 

The meeting scheduled for 
Vienna has been billed only as 
a consultative conference. Mem- 
bers are apprehensive about a 
debacle similar to the one 
which occurred in Geneva last 
August when Opec failed to 
agree upon a unified price 
structure, an objective only 
achieved in Geneva in 
November. 


A Court raises ACC bid 


BY JOHN MOORE. CITY CORRESPONDENT 


AUSTRALIAN entrepreneur Mr 
Robert Holmes & Court has 
mounted a new takeover bid for 
Associated Communications Cor- 
poration which places a value of 
more titan £52m on the enter- 
tainments group buik ■ up by 
Lord Grade. 

Under the rules of the City 
Code on Takeovers and Mergers 
Mr Holmes i* Court was obliged 
to. revise bis offer to take 
account of the new mid highest 
price be was prepared to pay 
for tile shares, and to announce 
the new bid immediately. 

TVW Enterprises, an asso- 
ciate company of Mr Holmes k 
Court’s master company, the 
Bell Group, acquired 925,000 
non-voting shares in ACC last 
week at prices of up to 95p . 
a share. This was 5p higher 
per share than Heron’s last 
offer, and lOp more, than an 
earlier increase by Mr Holmes k 
Court 

.Tbe Ttakeover Panel is in- 
vestigating the circumstances 
surrounding the purchase of the 


925,000 shares in London, and 
■ the delay in announcing the bid. 

Bard ays Merchant Bank, 
advisers to Heron Corporation, 
which complained about the 
build-up of ~ the Australia’s 
stake, was meeting Mr John 
Hignett director-general of the 
Takeover Panel. last night-. 

. Directors of ACC were told- 
of -the surprise move by the 
Australian on Saturday. This is. 
bis third announced^ takeover 
bid for the company. 

The bid is nearly £3m higher 
than the £49m offered by Heron 
Corporation,, the private com- 
pany headed by Mr Gerald 
Reason. It follows an aggres- 
sive round of share buying in 
ondon by Mr Holmes k Court’s 
. business interests last week. 

TVW Enterprises bolds 
nearly 53 per cent of ACC’s non- 
voting shares. The Bell Group 
holds over 2 per cent of the 
crucial voting shares. 

Under the terms of the bid 
Mr Holmes k Court is offering 
the 11,000 or so holders of non- 


voting shares 95p a share in 
cash. 

Holders of the important vot- 
ing shares, held largely by ACC 
directors, will receive a price 
for their shares carefully 
related to a formula in the 
articles of association. 

They could* receive about 
£L6b for eacb-of their shares. 

In' -all, ACC has received five j 
takeover bids, three from Mr 
Holmes k Court and two from 1 
Heron Corporation, in one of 
the hardest-fought takeover 
battles the City has seem 

Heron Corporation bas yet to 
declare its hand since these 
latest developments. It hopes 
to send its offer document detail- 
ing its 90p a share cash bid to 
ACC shareholders on Wednes- 
day. 

Mr Michael Peterson, director 
of Barclays Merchant Bank, 
said yesterday: “ We would like 
to see the colour of Mr Holmes 
k Court’s offer document 
before saying what we will do.” 


Tory reyolt on Budget unlikely 


BY PETER RIDDELL, POLITICAL EDITOR 


SIR GEOFFREY HOWE, the 
Chancellor, looks set to avoid 
the major revolt by Tory back- 
bench MPs over his Budget 
statement tomorrow which 
earlier appeared possible. 

All the signs at Westminster 
are that both the overall 
balance of the Budget and the 
detailed proposals .. .will be 
pitched so that most of the 30 
MPs critical-of toe Government’s 
strategy, the so-called “wets,” 
will support Sir Geoffrey, how- 
ever grudgingly. 

One leading "wet” said yes- 
terday, that while be expected 
the Budget to be much less 
expansionary than he would 
like, there would be nothing to 
oppose and so meth ing; if not 
enough, for industry. 

Tbe expected mixture of 
modest tax relief and industry 
aad will be wetooaned by the big 
group of Midlands Tory MPs, 
many of whom were restless 
after the last Budget. 

There will also probably be 
none of the sharp criticism of 
Sir Geoffrey by other Ministers 
which followed the unexpectedly 


tough Budget last year. 

Considerable pressure will be 
put on Tory MPs not to rock 
the boat ahead of the by-election 
on March 2 in Glasgow 
HiUhead where Mr Gerry 
Malone, the party’s candi- 
date, is seen as having a 
fi ghting chance in defending 
the seat against Mr Roy Jenkins 
for the SDP/Liberal Alliance. 

The SDP is keen to secure a 
Tory defector after the Budget 
— as the party did last year in 
Mr Christopher Brocklebank- 
FovWer. 

SDP leaders are hopeful of 
•winning over one or two of tbe 
hardcore of disillusioned Tories 
such as Mr Hugh Dykes. Mr 
David Knox and Mr Robert 
Hicks. But, speculation bas died 
in recent weeks and there Is no 
longer talk of six defections as 
there was before Christmas. 

Some of the dillusioned Tories 
are known to have been con- 
sidering resigning tbe Whip 
and sitting as independent- 
Conservatives but again the 
number is tiny. - 


The “ wets ” wfll discuss after 
the Budget whether to put down 
amendments to the Finance 
Bil but this has become less 
likely in tbe last fortnight. 

MPs and ministers also ex- 
pect that Sir Geoffrey will bow 
to the susceptibilities of many 
backbenchers and drop his 
December proposal to save 2 
per cent on unemployment 
benefit as a result of the undea > < 
estimation of inflation bet year. 1 

RaconcaKation was indicated 
in. a speech cm Friday by Mr 
Norman St John. Steves, a for - , 
mer Cabinet minister and 
prominent u wet,” who high- 
lighted the narowing of differ- 
ences over economic policy 
within iflhe- Conservative Party. 

• Mr Bryan Magee, MP for 
Leyton, is set to become the 
28th member of tbe SOP’S 
parliamentary group after re- 
signing from the Labour Party 
in January. Since, he has been 
talking to the local SDP organi- 
sation before applying for the 
Whip in Parliament 

Howe’s strategy, Back Page 


Natal/Znln power-sharing plan 


BY ]. D. F. JONES IN JOHANNBBURfi 


For latest Shore Index phone 01-346 8036_ 


AN INDEPENDENT, .-multi- 
racial commission has recom- 
mended that Macks and whiles 
should shar e power in one of 
South Africa’s four provinces. 

Tbe commission's keenly 
awaited report, which wiU in- 
fluence the debate on • the 
country’s future constitution, 
also warned of the growing 
potential for violent confron- 
tation. 

The commission, established 
by chief Gatsha Buthelezi, 
leader of South Africa’s biggest 
tribe the Zulus, has proposed a 
joint executive to ran Natal and 
the Zulu homeland of Kwazuhz. 

Blacks and whites should be 
equally represented and there 
should also be a legislative 
assembly elected by universal 
adult suffrage, tbe report says. 

Central to the seven-volume 
report, released yesterday, are 
the results of surveys which 
demonstrate that Black patience 
with the apartheid system is al- 
most exhausted. 


TANZANIA’S currency will 
be devalued by 10 per cent 
from today. Hr Charles 
Nyirabu, governor of the 
Bank of Tanzania, said the 
devaluation was “purely a 
domestic affair. It is not tied 
to any technical loans relation- 
ship.” 

“ while a revolutionary situa- 
tion has not yet emerged in 
general terms, developments 
appear to point in that direc- 
tion,’ concludes the commis- 
sion, whose report is 
characterised throughout by 
moderation. 

Other findings include: 

• “ Political discontent and 
anger ” in tight out of 10 
blacks. “ Actual' militancy and 
an attitude of confrontation ” 
in nearly four out of 10 blacks. 

• The principle of- universal 
suffrage is rejected by nine oat 
of 10 whites and six oat of 10 
Coloureds and Indians. 


• .A majority of blacks say 
African National Council insur- 
gents would receive “sympathy 
or co-operation.” 

• “ The overwhelming majority 
of black respondents ' spontane- 
ously predict violence or adult 
social unrest on a large scale 
if meaningful policy reform does 
not ocas - in the near future.” 

'The Buthelezi Conumstion was 
set up in I960 with a multi-racial 
membership of almost 50 dis- 
tinguished politicians, business- 
men and academics— through 
boycotted by the ruling National 
Party— to look into “an alter- 
native regional constitutional 
arrangement” 

It focuses on the relationship 
between the province of Natal 
and the tribal homeland of 
Kwazulu — whose chief minister. 
Chief Buthelezi, has refused to 
accept “independence” from 
the South Agrican Government, i 
The commission acknowledges, ; 
however, that it s work could be 
Continued on Back Page 


Rise in ! W. German metal 


U.S. 

spending 

estimates 


By Ahatole Kaietsky 
in Washington 

THE REAGAN Administra- 
tion bas increased its esti- 
mates of public sp ending and, 
implicitly, of the 1983 
budget deficit, by nearly $5bn 
(£2.72bn), Mr David Stock- 
man, the Director of the 
Offiee of Management and 
Budget, bas revealed to the 
Congressional Budget Com- 
mittees. The change, th o ugh 
small, will increase congres- 
sional suspicion of the official 
estimates. 

In a separate announce- 
ment on Saturday, Mr Donald 
Regan, the Treasury Secre- 
tary, said on television that 
the Administration might sup- 
port repeal of the indexation 
of tax brackets— a device to 
protect planned tax cuts 
against inflation — which Is 
dne to come into effect at tbe 
beginning of the 1985 fiscal 
year. 

He also said the controver- 
sial “tax leasing” provision 
In last year's tax reforms, 
which allows unprofitable 
companies to pass on their 
tax exemptions to companies 
paying taxes, may also be 
reconsidered. 

The expected increase in 
spending relates to agricul- 
tural subsidies, now estimated 
at $6.8bn. against the Sl-9bn 
in President Reagan’s 1983 
budget: 

It means that the Budget 
deficit, on the Administra- 
tion’s assumptions, will now 
be $96.4bn in fiscal 1983 and 
not $9L5bn, as forecast. 

It also suggests that the 
cost of agricultural subsidies 
may drive the 1982 deficit 
above $100bn, compared with 
tbe Administration’s - most 
recent estimate of $98bn, and 
the initial projection In last 
year's budget of $45bn. 

Although the increase of 
$4J>bn, based on new esti- ■ 
mates of crop harvests and 
the need for government 
stockpiling to maintain prices, 
is small in relation to tbe 
size of the budget deficit, it 
is bound to add force to the 
argument that official projec- 
tions are over-optimistic. 

The non-partisan Congres- 
sional Budget Office has calcu- 
lated that even if the Presi- 
dent's budget programme is 
not modified by Congress, tbe 
resulting budget deficit in 
1983 will be $126.6bn. 

The office predicted that the 
estimate for farm price sub- 
sidies would have to be raised 
by about $5bn. 

Administration officials in 
Santa Barbara, California, 
where the President was tak- 
ing a brief holiday, have been 

Continued on Back Page 


union agrees to 
4.2% wage rise 


BY STEWART FLEMING IN FRANKFURT 


IG METAL. West Germany’s 
biggest trade union, struck a 
bargain with metal industry 
employers at the weekend which 
is expected to give 3.7m wor- 
kers in tbe industry wage in- 
creases of between 4J2 and 4.5 
per cent. 

The preliminary settlement 
— the first breakthrough in this 
year's wage round — paves the 
way for agreements across the 
whole of West German in- 
dustry. For the second con- 
secutive year it will force wor- 
kers to accept a decline in real 
income. 

It is unlikely that workers in 
other big industrial sectors, or 
public service, will be able to 
negotiate wage contracts which 
give them bigger increases than 
the metal workers'. 

The proposed increases in the 
metal industry, which are 
expected to average 4.2 per cent, 
compare with a likely consumer 
price inflation rate in West 
Germany this year of about 5 
per cent. 

Last year metal workers 
settled for dose to 5 per cent 
while the inflation rate averaged 
more than 6 per cent. 

The provisional . settlement 
establishes a critical foundation 
on which economic policy- 
makers can build. 

It has been apparent for some 
weeks that the Bundesbank, the 
West German central bank, has 
been awaiting the wage round's 
outcome before deciding how 
much room for manoeuvre it 
has to further lower West 
German interest rates. 

The Bundesbank has indi- 
cated that modernisation would 
help to redistribute national 
income towards a corporate 
sector which has been suffering 
sharp declines in profits and 
revising, downwards, invest- 
ment spending plans. 


The central bank sees s 
moderate wage settlement as 
vital to further reducing 
inflation and inflationary ex- 
pectations and, thus, strengthen- 
ing international confidence in 
the D-mark. 

If the agreement, reached on 
Saturday by arbitration in 
North Rhine Westphalia, is 
accepted by union and industry 
officials In other negotiating 
districts, as recommended, then 
the central bank can expect re- 
newed pressure to ease its 
monetary policy. 

The settlement's level, the fact 
that the cost of living figures 
for February showed a signifi- 
cant decline in inflation to 
below 6 per cent for the first 
time in six months, and the 
central bank's own anxiety to 
help revive a flagging economy 
all suggest that the Bundesbank 
will want to respond positively. 

The principal constraint the 
bank still faces remains the 
D-mark's performance against 
the U.S. dollar on foreign ex- 
changes, and the unpredicta- 
bility of U.S. interest rates. 

Last week saw some en- 
couraging developments as the 
D-mark recovered some ground 
lost during February. 

The agreement reached with- 
out the protracted round- of 
token strikes which marked last 
year's negotiations will also 
be seen as a success for Govern- 
ment policy. 

Bonn's proposed investment 
and employment stimulation 
programme has helped union 
leaden swallow a wage settle- 
ment which will reduce real in- 
comes, allowing them to argue 
with their members that the 
Government is seeking to take 
active steps to combat unem- 
ployment levels of close to 2m. 


Talks may open Japan to 
UK telephone equipment 


BY GUY DE jONQUIERES 

NEGOTIATIONS ARE taking 
place for a deal which could 
lead to a British-designed tele- 
phone exchange being made 
under licence by Nippon Elec- 
tric (NEC), Japan’s largest 
maker of telecommunications 
equipment 

NEC is understood also to be 
considering establishing a 
television-production plant in 
the UK It is already building 
a large semiconductor making 
facility in Livings ton, Scotland, 
costing about £50m. 

These moves are linked 
apparently to NEC efforts to 
overcome official hurdles re- 
stricting its entry to Britain’s 


newly-liberalised market for 
telecommunications equipment 
NEC wants to seU a range of 
products, notably private 
branch-exchanges (PABXs) and 
satellite earth stations, of 
which it is one of the world’s 
leading suppliers. 

So far, however, its only 
significant achievement has 
been an agreement to license 
Rediffusion to make one of its 
radio-paging receivers. Its 
recent application to British 
Telecom for approval to sell an 
electronic PABX was rejected. 

NEC was also disappointed 
last year when Matsushita, a 
Continued on Back Page 


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Gut out lor your 
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OVERSEAS NEWS 


. Financial Times Mondax IBSarckS . 






Five to die for Sadat assassination 


BY OUR CAIRO CORRESPONDENT 


FIVE PEOPLE were sentenced 
to death by the Egyptian 
Supreme Military Court on 
Saturday for their part in the 
assassination of President 
Anwar Sadat. The sentences 
came exactly five months after 
President aSdat was shot at 
a military parade in Cairo. 

The condemned men included 
the four-man assassination squad 
led by Lt. Khaled El-Islaiubouii. 
as well as Ahdessalaum Ei- 
Farag, 27. an engineer, con- 
victed of supplying the weapons 
and ammunition. 

Seventeen others were sen- 
tenced to prison terms with hard 
labour ranging from five years 
to life for their part in what was 
described as a plot to overthrow 
the Egyptian government, in an 
Islamic revolution. 


Two men were acquitted on 
all charges, although both are to 
be indicted next week by the 
state security Prosecutor, along 
With others, on charges of 
belonging -to the so-called Jihad 
Islamic extremist organisation. 

The trial, which began on 
November 21, with the Egyptian 
authorities doing their utmost 
to show -ihe world that justice 
was being done, ended in fiasco. 

After the first two sessions, 
all court hearings had been held 
in camera. Lawyers for the 
defence complained that they 
were being forbidden by the 
court to bring their chosen 
defence witnesses. 

The final session typified the 
proceedings. About 100 jonroa- 
lists were led through tight 


security to the court room, 
where they were greeted by the 
24 defiant defendants. 

Locked in a specially-con- 
structed cage, all were wearing 
flowing white robes and beards, 
•in imitation of the Prophet 
Moll attuned. The exception was 
Aoud El-Zomr. who wore a uni- 
form — that of a Lieutenant- 
Colonel of military dnteHigence. 
He received a life sentence. 

The defendants chanted 
slogans in Arabic and English, 
attacking Ihe peace with Israel 
and calling Sadat a traitor .and 
the “baddest king Egypt has 
ever had.” Slogans daubed on 
pieces of cloth -adorned the bars 
of the cage. A macabre sight 
was introduced by two scarves 
rolled up as hangman's nooses. 

After 10 minutes, the Press 


and about nine relatives who 
had come to hear the verdicts 
were ushered from the court- 
room, on the pretext that there 
bad been a power failure. Two 
hours later, the verdicts and 
sentences were read out. 

President Hosni Mubarak, as 
supreme head of the armed 
forces, has 30 days to ratify the 
sentences. After that, the con- 
victed men have 15 days to 
appeal for clemency. 

• The Bahraini Government 
News Agency said yesterday 
that President Mubarak had 
received a goodwill message 
from the Emir of Bahrain — yet I 
another sign of Egypt’s improv- 1 
ing relations with the Arab 
states that rejected Cairo’s 
peace with Israel, Reuter I 
reports from Cairo. 


Israel and France to 
discuss reactor purchase 


Trade deficits ‘continue 
to blight South Asia’ 


JERUSALEM — Israel and 
France are to hold talks in Paris 
next month to discuss the pos- 
sible purchase of a French 
nuclear reactor. The negotia- 
tions. which will also cover 
arms sales, will be conducted 
through a joint economic com- 
mission which has not met since 
relations between the two 
countries deteriorated in 1967. 

An Israeli official said the 
commission would meet on 
April 29 and 30 and that Israel's 
Foreign Minister, Mr Yitzhak 
Shamir, would visit France in 
April or May. 

Mr Shamir’s visit and the 
reconvening of the commission 
were some of the results of 
President Francois Mitterrand's 
three-day state visit to Israel 
last week, the official said. He 
stressed, however, that discus- 


sions on the possible arms and 
reactor sales were *’ in their 
earliest stage." 

Mr Shamir told Israel Radio 
at tiie weekend that M. Mitter- 
rand’s visit " enabled us to start 
discussing- the purchase of a 
French nuclear reactor for 
peaceful purposes. 

Our Foreign Staff writes: The 
mainstream oE the Palestine 
Liberation Organisation has 
reacted with hostility to the 
Mitterrand visit. 

Mr Salah Khalaf, who is 
deputy to Mr Yasser Arafat in 
Al-Fatah. dismissed M Mitter- 
rand’s call for a Palestinian 
state. 

• Israel’s Prime Minister. Mr 
Menahem Begin, has been 
ordered by his doctors to rest 
at home for three days after 
being taken ill at a banquet 


BANGKOK — Grinding poverty, 
unemployment and chronic 
trade deficits continue to blight 
the countries of South Asia, 
according to a new United 
Nations survey. 

The report, prepared by the 
UN Economic and Social Com- 
mission for Asia and the Pacific, 
said mass starvation in some 
areas could be avoided only by 
large food imports. 

The gap between rich and 
poor was continuing to wu&sn in 
most South • East Asian 
countries, it added. 

Economic conditions had im- 
proved in the war-ravaged 
Communist countries of 
Indochina, but the report said 
they still needed huge food aid 
from abroad. 

One bright spot in the region 
was the record of the five 


member-states of the Associa- 
tion of South-East Asian 
Nations (Asean). 

The report said these coun- 
tries — Singapore, Indonesia, 
the Philippines, Malaysia and 
Thailand — as well as Burma, 
Hong Kong and South Korea, 
had maintained strong rates of 
economic growth. 

Their growth rates ranged 
from 5 per cent in the Philip- 
pines to 10 per cent in Hong 
Kong. 

Countries of South Asia — 
Afghanistan. Bangladesh. | 
Bhutan. India, Nepal, Pakistan 1 
and Sri Lanka — are among the 
poorest in the world, with 
annual per capita incomes rang- ! 
ing from $80 in Bhutan to $260 
in Pakistan. 

Reuter 


Japanese 
Opposition 
end boycott 

Opposition parties ended a 
six-day boycott of the 
Japanese Diet (parliament) 
yesterday after reaching^ a 
compromise with the ruling 
Liberal Democratic Party on 
their demand for a Yl.OOObn 
(£2.3bn) cut in income taxes. 
Renter reports from Tokyo. 

The agreement called for 
the Government to try to 
reduce Income tax at the 
earliest possible date. It 
clears the way for the lower 
House to resume debate on 
the Government's Y49,680bn 
(£l!4bn) budget for the fiscal 
year starting next month. 

Ceausescu visit . 

Romania's President Nicolae 
Ceausescu Is to visit Greece 
from May 4-6, Reuter reports 
from Athens. The visit will 
be the latest in a series of 
exchange visits over reoint 
years between Greece’s 
leaders and those of Romania, 
Yugoslavia and Bulgaria. 

EEC consultations 

The Prime Ministers of 
Portugal and Spain are to 
visit Greece soon for talks 
expected to centre on their 
countries’ bids for fall mem- 
bership of the European 
Economic Community, Reuter 
reports from Athens. 

Tongan recovery 

The Tongan Islands, devas- 
tated by a cyclone last 
Wednesday, hope to be self- 
sufficient in food again within 
six months, Reuter reports 
from Nuku ’AJofa. But Dr 
Ldngi Ravalika, Minister of 
Works, said yesterday It 
would take at least two years 
for a full recovery iu agricul- 
tural production. 


Archbishop Glemp 
appeals for 
all-round conciliation 

BY DAVID BUCHAN, EAST EUROPE CORRESPONDENT. IN WARSAW 


POLAND'S Roman Catholic 
primate said yesterday that the 
Church faced “a gigantic tads, 
perhaps more dedicate than any 
in our history,” in trying to heal 
Poland's political divisions and 
to end its protracted crisis. 

In a sermon to an overflow- 
ing congregation at St Michael's 
Church in Warsaw, Archbishop 
Josef Glemp called on ail 
elements of Polish society, in- 
cluding the military Govern- 
ment, the Church, trade -unions 
and youth, to make conciliatory 
efforts. Progress, be said, would 
be gradual and he rejected those 
who used such slogans ‘as “ an 
or nothing,” and “now or 
never.” 

The archbishop made no men- 
tion of recent incidents In which 
a priest was given a suspended 
sentence for anti-Govemment 
statements, and in which 
another was arrested for alleged 
involvement in the shooting of 
a policeman. While some Church 


officials are worried that this 
might be part of a move, to dis- 
credit the Church, a Govern^, 
ment Minister has said the. 
incidents, would not be -allowed 
to aggravate Church-state 
relations; ‘ ‘ ■ - 

Archbishop Glemp said that 
ail Poles welcomed the fact that 
Pope John Paul was due io visit 
Poland - itiris summer- This 
apparent . .confidence qfcat the 
Pope would cany out his trip, 
planned for Augict was seen as 
. significant . in (the Jd@h£ of 
reports that the Soviet leader- 
ship pud pressure on General 
Jaruzelska in Moscow last week 
to block <tKe papal visit! 

The Polish Church Bias in par- 
ticular been urging tire Govern- 
ment to open negotiations with 
Mr Lech Walesa, itfae interned 
Solidarity leader. According to 
Mr Walesa's wife, Danuta, the 
Solidarity leader is to be 
allowed out for the christening 
of their latest child in two 
weeks’ time. 


Georgian failures attacked 


The Communist Party leader 
in the Soviet Republic of 
Georgia has acknowledged that 
hbe region is in serious 
economic difficulty and said (that 
revolutionary reforms were 
needed. 

Mr Eduard Shevardnadze; who 
is also a candidate member of 
the Soviet Politburo, said many 
of the republic's best business 
would long ago have been 
forced to declare bankruptcy in 
“other social conditions." 


“We have not learne d to 
calculate money and we treat 
credits without common sense,” 
he said in a speech published 
in the Georgian newspaper, 
Zarya Vostoka. 

His speech -was apparently 
prompted by a recent visit to 
the state bank, in Moscow, 
where, he said, officials printed 
out serious problems in many 
Georgian Ministries and enter- 
prises. 

AP 


New Issue 
March 4, 1982 


Ail of these notes having been placed, this an- 
nouncement appears for purposes of record only. 


INTERNATIONAL BANK 

FOR RECONSTRUCTION AND DEVELOPMENT 

Washington, D.C. ^ 


U.S. $ 250,000,000 

15Y4% U.S. Dollar Notes of 1982, due 1988 


WORLD BANK H 


French investment upturn forecast 


BY TORY DODSWORTH IN PARIS 


A MODEST UPTURN in 
French investment, probably at 
an annual rale of a little under 
1 per cent a year, was forecast 
yesterday by IN SEE. the 
national statistical office, for 
.the first six months of this year. 

If confirmed, the prediction 
would mean a significant tom- 
round after a fall in private 
investment last year of at least 
7 per cent 

Although a revival of indus- 
trial investment is one of the 
main objectives of the Govern- 
ment’s economic policy, most 
recent surveys of management 


intentions show considerable 
pessimism. There have been 
predictions of a fall in expendi- 
ture of between 4 and 5 per 
cent, and only this week, the 
Paris Chamber of Commerce 
and Industry argued that profit 
margins must be allowed to 
rise to make resources avail- 
able for investment. 

INSEE argues that this man- 
agement pessimism is not 
entirely borne out by the situa- 
tion an the market place. The 
growth in imports and the in- 
crease in sales of capital goods 
suppliers showed, it said, that 


the drop in investment has been 
stopped and that there was -now 
a - slight tendency towards 
growth.-. 

The office goes on to stress, 
however, that the -main stimu- 
lus in the French economy is 
still, coming from the rise in 
consumption created by the 
increase in social security pay- 
ments. . 

During the first six months of 
this year, it expects growth to 
amount to around L3 per cent 
with prices rising at about 1 
per cent a month. 


Deutsche Bank 

Aktiengesallschaft 


Credit Suisse First Boston 

Limited 


Salomon Brothers International 

Kuwait Investment Company 
(S.A.KJ 


Banque de Paris et des Pays-Bas Goldman Sachs International Kuwait Investment Company 

Corp. (S.A.K.) 

Merrill Lynch International & Co. Morgan Stanley International Nomura International Limited 
Swiss Bank Corporation International S.G. Warburg & Co. Ltd. 

Limited 


Alsbfi Bank of Kuwait K.S.C.J 

Arab Banking Corporation (ABC) 

Bache Halsey Stuart Shields 

incorporated 

Banca del Gottardo 

Bank Gutzwrlfer, Kurz, Bungensr (Overseas) 
Limited 

Bank of Tokyo International 
Limited 

Banque de IMndochine et de Suez 
Banque de Neuffizc, ScbJumberger, Mallet 
Barclays Bank International 
Limited 

Bayerische Landes bank 
Giiozentrale 
Bergen Bank 

Blyth Eastman Paine Webber 
International Limited 
James Capel & Co. 

Chemical Bank International 

Limited 

Commerzbank 

Aktiengesellschafc 

Credit Commercial de France 

CrMR Lyonnais 

Daiwa Europe Limited 

DC Bank 

Deutsche Genossenschaftsbank 
Dresdner Bank- 
Alrtiengase/lschaft 
EuramobSare S.jxA. 

Genossenschaftfiche Zentralbank AG, Vienna 


Hambros Bank 
Limited 

Hlfi Samoa! & Co. 

Limited 

btituto Bancario San Paolo di Torino 

Kredfetbank SLA. Luxembouigeotst 

Lazard Brothers & Co v 

Limited 

LTCB International 
Limited 

Merck, F>nck& Co, 

National Bank of Abu Dhabi 

Nordic Bank 
Limited 

Piersori, Hefdring & Pierson ILV. 

Sfcam&iavtsfcl EnskiWa Banker* 

Socteri Generals de Banque S A 
Trinkaus & Burkhardt 

Westfalen bank 
Aktiengesellschaft 


Algemene Bank Nederland N.V. 
Am ho id and S. Blekhroeder, fate. 

Julius Baer International 

Limited 

Bank of America international 
Limited 

Bank Leu International Ltd. 


Amro International 
Limited 

Atlantic Capital 
Corporation 

Banca Commertiale haKana 

The Bank of Bermuda 

Limited 

Bank Mess & Hope NV 


Banque Fran$aise du Commerce Bcterieur Banque Generals du Luxembourg $ A 

Banque Internationale k Luxembourg SA. Banque Nationals de Paris 

Banque de r Union Europeonna Banque Worms 

Baring Brothers A Co., Bayerische Hypotheken- und Wechsel-E 

Limited AJaiengesallschaft 

Bayerische Vereinsbank Bear Steams & Co. 

Aktiengesellschaft 

BerSnerBank Berliner Handels- and Frankfurter Bank 

Aktiengesellschaft 

8.S.I. Underwriters Caisse des Depots et Consignations 

Limited 

Cazenove & Co. Chase Manhattan 


Christiania Bank eg Krufitfcasse 

Co n t in e n tal IDmois 
Limited 

Credit Industrie! cf Abacs et de Lorraine 

Credit du Nonl 

Detbrtick&Co. 

Dillon, Read Overseas Corporation 

Drexel Burnham Lambert 
incorporated 

European Banking Company 
Limited 

Antony Gibs & Sons 

Limited 

Handebbank N.W. (Overseas) 

Limited 

E.F. Hooon International Inc. 

Kidder, Peabody Inte rnati o na l 

limited 

Kuwait Foreign Trading Contracting & — 
Investment Co. (SAKJ 
Lehman Brothers Kuhn Loeb - 
International, Inc. 

Manufacturers Hanover 
Limited 

Samuel Montagu & Co. 

Limited 

The NIUro Securities Co„ (Europe] Ltd. 

Den norske Credftbank 

Rabobank Nederland * 

Smith Barney, Harris Uphara & Co. 
Incorporated 

Soriitf Sequanaba de Banqu* 

Vanins- and Westbank 
Aktiengesellschaft 

Dean Wftar ReynoH* Overseas Lid, ' 

Yamaichi International {Europe] 

Limited 


Banque Nationals de Paris 
Banque Worms 

Bayerische Hypotheken- und Wechsel-Bank 

AktiengesaJlschait 

Bear Steams & Co. 

Berliner Handels- and Frankfurter Bank 

Caisse des Depots et Consignations 

Chase Manhattan 
Limited 

Citicorp Internationa! Bank 

Limited 

County Bank 

Limited 

Credit' Industrial et Commercial 
Credits nstalt-BankvereiQ . 

Deutsche Grrozentrale 

— Deutsche Koaimunalbank — 

Dominion Securities Ames 
Limited 

Effectenfaank-Warburg 
AJetiengeseHschah 
Gafina International 
Limited 

Gtruzantrsie und Bank 
der esteneich'adjen Sparkassen 
Aktiengesellschaft 
Hessische Landesbink 

— Gmentnlt — 

Jndustriebank von Japan (Deutschland) , 

Aktiengesellschaft 

Kleinwort, Benson 

Limited 

Kuwait International Investment Co. s-a-k. 

Lloyds Battic I n t e rn ati o na l 
Limited 

McLeod Young Weir ftitenutranal 

limited 

Morgan Guaranty Ltd 

Norddeutscfae Landesbink 
GirozeirtraJe 
Orion Royal Bank - 
Limited 

J. Henry Schroder Wagg A Co. 

Limited 

Sooetti Gentirale 

Svensta Handelsbanken 
Westdeutsche Landeshank 
Girezentrale 
Wood Gundy Limited 






Mr Haig: encouraged by 
convergence of views 

Mexico and 
U.S. closer 
on Salvador 

By Anatole Kaletsky in Washington 

THE REAGAN Admini stra ti on 
has said it is encouraged by * 
meeting to discuss El Salvador 
which was held on Saturday 
between Mr Alexander Hai£;7t?ie- 
Secretary of State, and Sr Jorge 
Castaneda, the Mexican Foreign 
minister. The meeting 1 was 
designed to “ flush out ” a peace 
plan for El Salvador put for- 
ward last month toy Meaactfa 
President 1 Jose Lopez' Porttfle, 
and may turn out to be a first 
step towards a negotiated solu- 
tion to that country's civil war. 

Officials accompanying. Mr 
Reagan on holiday in California 
told reporters in unustutily 
forthright terms that the Presi- 
dent had virtually ruled out Any 
possibility of direct military in- 
volvement in El Salvador. . His 
refusal to say sd publicly was 
due to the need to keep up pres- 
sure on the guerrilla leaders. 

The Mexican plan -centres on 
negotiations between the Salva- 
doran guerrillas and . the ' 
Government of President 
Napoleon Duarte, backed up by 
a more general rapprochement 
between the U.S., Nicaragua add 
Cuba. 

The U.S. showed little interest 
in the proposals when they were 
first put forward by the Mexican 
President in February But on 
Saturday, after meeting 'the , 
Mexican Foreign Minister in 
New York, Mr Haig said there 
had been a “greater convcr- 
genence of views” between. the 
two Governments. 

FINANCIAL TIMES, publ.shud daily 
axeept Sundays and holidays. U.S 
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Second Class postage paid -at New 
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VERSATILE AND 






rai^ jp 

yfl 

3sR 


Etoncial Times Monday March 8 1982 

Japanese to build 
iron plant costing 
£246m in Malaysia 


WORLD TRADE NEWS 


BY WONG SUUONG IN KUALA UJMPUR 

^AG^MpiT to build a tog bettei 
W5tai (£246m) sponge iron country’s 
P^t was signed . to Kuala would lea 
tnapur at the weekend an inters 
between a consortium of eight 10 sears, 
■J^aaftse . companies, led by anstitutiox 
Nippon Steel, and the Malaysian S67m at 
Government's Heavy Industries same peri 
Corporation, Hicom. Voest 

It provides for the Japanese b uilding j 
to pu Dd the plant capable of iron .pla 
producing 600,000 tonnes of Govemme 
Sponge iron and 560,000 tonnes Sited at 3 
of steel billets a year, on a turn- also use j 
key basis, at Paka in Trengganu Sabah, as 
State. Under 1 

The plant, to be ready by meat be 
mid-1985, would use natural gas consortiuz 
found off. Trenggamt as fuel. Industries 
Iron ore will be imported from venture ct 
Australia and other countries. to opera 
- The Japanese consortium, Japanese 
whidi tocludeChiyoda Chemical 30 per ce 
Enginearaag and Construction, the Matey 
Daado Steel and Mitsubishi cent. 
Heavy Industries, won the con- Foilowii 
tract over its Austrian rival, wiriesprea 
Voest Alpine, because it was contract 
prepared to take a 30 per cent Japanese 
equity stake, in the project agreed to 
The Japanese are also offer- Malaysian 


tog better financing terms. The 
country’s Export-Import Bank 
would lend the project $285m at 
an interest of 7.7 per cent for 
10 years, while other Japanese 
institutions would lend another 
$67m at 6.5 per rant for the 
same period. 

Voest Alptoe is currently 
building a smaller size sponge 
iron .plant for the Sabah 
Government to East Malaysia. 
Sited at Labuam Island, it will 
also use natural gas, found off 
Sabah, as fuel. 

Under the terms of the agree- 
ment between the Japanese 
consortium and the Heavy 
Industries Corporation a joint 
ve n t ur e company will be set up 
to operate the plant. The 
Japanese companies will have 
30 per cent of the equity and 
ihe Malaysian interests 70 per 
cent. 

Following the increasingly 
widespread trend in project 
contract negotiations, the 
Japanese companies have 
agreed to provide training for 
Malaysian technicians. 


UK EXPORTS 


Cable Belt wins £4m 
South Africa deal 


BY OUR WORLD TRADE STAFF 


CABLE BELT, the Lair’d Group 
subsidiary, has won through its 
Sooth African unit a £4m con- 
tract for. a conveyor system in 
South Africa. The buyers are 
BP Coal South Africa and Rand 
Mines. 

The conveyor win c ar ry coal 
from the new Middleburgh coal 
mine to the Witbank area of 
Transvaal to a tram terminal, 
whence the coal wiH be sent to 
the coast for export. The con- 
veyor is 8 km long. The con- 
tract wiU lead to Cable Belt 
buaMtog a new manufa c turing 
plant in Johannesburg. 

# W. S. Atkins Group, the 
Epsom-based consultants, is to 
design and supervise ihe con- 
struction of Ihe Mirqab trans- 
portation centre in Kuwait & 
£2 00m project planned by the 
Kuwait Ministry of Public 
Works. The scheme embraces 


Japan protests 
at Taiwan 
import ban 

TOKYO — Japa n bas lodged a 1 
protest with Taiwan through its 
semi-official interchange asso- 
ciation for Taiwan’s banning of 
imports of some Japanese pro- 
ducts. the Ministry of Inter- 
national Trade and Industry 
TMiti) said at toe weekend. 

Mlti officials, however, denied 
a report that Japan bad Imposed 
certain retaliatory restrictions 
against Taiwan for its Febru- 
ary 13 announcement taking 
steps to ban imports of trucks, 
buses -and 1,500 consumer pro- , 
ducts from Japan. 

The officials said that since 
Japan bas no diplomatic rela- 
tions with Taiwan the protest 
was made through the associa- 
tion. No reply has yet been re- 
ceived from Taiwan. 

Taiwan's action apparently is 
aimed at protecting a domestic 
vehicle maker and narrowing a 
trade gap with Japan. 

Agencies. 


facilities for public transport, a 
business centre and approach 
roads. 

• Lazard Brothers, the London 
bankers, have arranged a 
HK$566m loan for the Mass 
Transit Railway Corporation in 
Hong Kong to purchase railway 
cars fom Metro-Cammell. The 
loan is supported by the Export 
Credits Guarantee Department 

• GES Turbine Generators has 
brought on str eam ahead of 
schedule the first of four steam 
turme mots for the Castle 
Peak A power station project in 
Hong Kong, part of two con- 
tracts wSth a total value of 
£305m. 

• Renotd Power Transmission 
of Rochdale bas won a £L3m 
order from the Soviet Union for 
the supply of stilling equip- 
ment to be used for gas com- 
pression. systems. 


Dutch to 
share £54m 
Norway deal 

By Fay Gjester In Oslo 

A JOINT venture between a 
Netherlands and a Norwegian i 
company has secured one of 
the major contracts — worth 
around NKr 600m (£54m) — 
in connection with Norway’s 
new gasgathering pipeline 
system. 

Norwegian contractors, Bredero 
Price, wilt be respons&rie for 
covering the pipeline sections 
with a protective sheN of 
asphalt anti-corrosion, anodes 
and concrete. 

The NKr 2bn contract for the 
steel sections awarded last 
year is being shared between 
Japan and Germany with 
Mannesmann and Beygrohr 
supplying the 36-in lines and 
Nippon Kokan, Nippon SteeL 
Sumitomo Metal, and Kawa- 
saki the 30-in and 2Sto lines. 
Deliveries of the steel sec- 
tions are scheduled to start 
June I and sbonld be com- 
pleted by the end of 1983. • 1 


SHIPPING REPORT 

Firmer trend foreseen 
in dry cargo rates 


BY OUR SHIPPING CORRESPONDENT 

CONDITIONS in the depressed North 
dry cargo trades could turn show 
more active and rates move 
slightly firmer until the early upturB 
summer, especially for smaller which 
size vessels, Matheson (Charter- imprtn 
tog) said in its monthly review, mar kei 
But after that, markets are On t 
again likely to be weighed down Wrigtr 
by the effects of recession and resurg 
the stream of new buildings by soz 
from the shipyards, it added. fixing 
Matheson said the modest im- Gulf, 
provement in rates seen in some Furl 
trades in the final days of Middle 
February could have resulted occur, 
from a temporary shortage of costs 
tonnage. added. 

More likely, however, was an Ever 
expansion of seasonal demand low le 
and owners' hopes that the agreed 


North Atlantic market would 
show an improvement in the 
next few months. 

Also noting signs of' a brief 
upturn was Denholm Coates, 
which reported a significant 
improvement in the Atlantic 
market. 

On the tanker side, Galbraith 
Wrigbtson said there was a 
resurgence of activity last week 
by some large U.S. charterers 
fixing large tankers from, the 
Gulf. 

Further chartering from the 
Middle East was expected to 
occur, especially if crude oil 
costs continued to slide, it 
added. 

Even so, rates remained at 
low leveis, with WoiMscale 16 
agreed to three cases. 


World Economic Indicators 


VS. $bn 


japan U33bn 


France FFrfcn 


W. Germany DMbn 


UK- On 


Italy Lirehn 


Belgium flFrbn 


Exports 

Imports 

Balance 

Exports 

Imports 

Balance 

Exports 

Imports 

Balance 

Exports 

Imports 

Balance 

Exports 

Import* 

Balance 

Exports 

Imports 

Balance 

Exports 

Imports 

Balance 


Jan. *82 
18.737 
22329 
-4092 
10246 
11.045 
-0799 
51.54 
5859 
—7.05 
31.40 
30 JO 
+ T.10 
Dec. ’81 
4.702 
4J71 
+0331 

9310 
10297 
—1,087 
Not. ’81 
178.726 
195.196 
-16.470 


Dec. *81 

Nov. TO 

18385 

19.153 

19.746 

22308 

-0361 

—3355 

14242 

llJSCT 

12920 

10.951 

+2222 

+0.616 

51 J7 

5070 

59.16 

57.40 

— 739 

-6.70 

35J5 

36.12 

30-81 

32.17 

+5.14 

+3.95 

Nov. *81 

Oct TO 

4790 

4550 

4739 

4184 

+0-051 

+0366 

WHO 

8376 

9318 

9,031 

-1,158 

- 455 

Oct *87 

Sept TO 

199-970 

198-696 

200.061 

198749 

-0JS91 

-0447 


Jan. *81 
10902 
22516 
-3.714 
9306 
10.718 
-1A12 
40.84 

46.74 
—5.90 
2730 
2020 
—0,90 
Dec. *80 
3.999 
354 6 

+0J53 

6.047 
7,454 
—1,407 
Not. *80 
160626 
1S6A28 
—17.402 


Pakistan’s 
earnings 
hurt by 
rupee rise 

By David Dodwell 

PAKISTAN’S raw cotton ex- 
ports slumped in the first 
half of its current financial 
year, depressing overall ex- 
ports by 10 per cent. The 
slump underlined the severe 
problems caused to the latter 
half of 1981 by the rapid 
strengthening of the 
Pakistani currency, the. 
rupee. 

Raw cotton exports for the 
six months to December 
earned just $59 -3m — hardy 
one third of the 3171m earned 
In the same period of 1980 — 
according to figures released 
by the State Bank of 
Pakistan. 

This slump to export earn- 
ings apparently accounts for 
the Pakistan Government's 
decision in January to free 
the rupee from its link with 
tiie UJ3. dollar. 

This link had led the rupee 
to rise between 20 and 40 per 
cent against some currencies 
over the past year, seriously 
eroding the competitiveness 
of major exports like cotton, 
carpets, rice and leather 
goods. 

Total export earnings for 
the first half of the financial 
year were SLlbn, compared 
with $L2bn to the same 
period of 1980-82, and about 
' half a billion dollars short of 
the export target set to the 
budget last summer- 

Import figures have not 
been obtained, but on the 
assumption that they have 
continued to grow at the 
annual 14 per cent recorded 
in 1980-81, the visible trade 
gap for the first half of this 
financial year may be as high 
as $2bn. If the present trend 
is not corrected, exports for 
the full year ending to June 
are unlikely to be higher 
than $2-2bn. Against imports 
likely to near $6.4bn, this 
win leave a yawning trade 
gap of HJbn. 

Since the rupee was 
allowed to float on January 
8, it has slipped by about 
9.6 per cent to value against 
the dollar, and' about 8 per 
cent overalL But foreign 
observers feel a much larger 
effective devaluation of the 
currency is necessary if the 
country's competitive position 
is to he restored. The Inter- 
national Monetary Fund is 
understood to believe that a 
devaluation of about 20 per 
cent is necessary. 

The Slump in cotton ex- 
ports has particularly 
alarmed the Pakistan Govern- 
ment. Raw cotton is the 
country’s leading export, and 
was expected to form the 
basis of a projected 8 per 
cent increase in exports for 
the present year. The Govern- 
ment last summer set a tar- 
get of over $500m to be 
earned by exporting raw cot- 
ton. hot ft will be lucky to 
earn more than $30 0m after 
the first half performance. ' 

Rice exports, the country's 
second major foreign ex- 
change earner, also slipped, 
earning just 3191m, compared 
with $232m in the first half 
of 1980-8L Yarn exports 
slipped by 22 per cent to 
379m. carpets by 47 per cent 
to 358m. 

Portugal 
pushes 
sales in U.S. 

By Diana Smith in Lisbon 

THE U.S. exported about 
3800m-wor1& of goods and 
services to Portugal in 1981 
'and bought about a Quarter 
•of that sum In Portuguese 
goods. As with Portugal's 
global export picture, rigid, 
traditional items like cork, 
textiles, wine and footwear 
top its sales list to the UB. 
But more diverse goods like 
electronic materials and 
plastic injector moulds are 
beginning to find a place to 
American markets. 

That Ss all to Portugal’s 
good. For its pre-EEC con- • 
tittion, with agriculture in 
continual exists, the country 
is so dependent on the U.S. 
for essential food and animal 
feed imports (80 per cent of 
all U.S. sales to Portugal) 
that Is has been moved to 
make one of its rare drives 
to penetrate the UB- market 
more intensively and try to 
narrow the trade gap. 

Portugal is lucky to one 
respect: fte textile sales to 
the U.S. are free of the 
restrictions from which they 
suffer to the EEC— though, 
even so, the tonnage of tex- 
tiles sold to America Is lower 
today than it was nearly 10 
years ago. 

As a small country with 
limited manufacturing capa- 
city and relatively slow 
diversification of industry, 
Portugal’s penetration of the 
VS. market hinges on its 
ability to develop 3 stronger 
image with potential buyers. 
When it has done this, as 
with the success a decade ago 
of Mateos Rose wine, ft has 
hardly looked back. 

Even today, with changing 
US. drinking tastes, Mateos 
Rosfi sells over lm cases to 
America each year- 

Once Portugal joins the 
EEC, as it hopes to do in 
1984, VS. farmers are likely 
to gradually lose a client 
whose grain import needs 
are hugely out of proportion 
to its general living stan- 
dards— still dismally poor In 
the rural areas of the 

country. 


THE U.S. RECIPROCAL. TRADE DEBATE 


Government tries to define its position 


BY PAUL OBE5ER1GHT, WORLD TRADE EDITOR 


SENIOR Reagan Administra- 
tion officials are expected to 
make a series of statements 
over the next fortnight aimed 
at curbing the apparent enthu- 
siasm of the VS. Congress for 
sweeping protectionist and, 
trade reciprocity legislation. 

A defined Administration 
position on trade reciprocity 
should finally become dear on 
March. 24 at hearings of the 
Senate Finance Committee's 
subcommittee on international 
trade. 

As hostility against Japanese 
trading policy has increased to 
the Congress, the slogan of 
reciprocity has been in- 
creasingly adopted. It advances 
the notion that the U.S. should 
open, its market to other nations 
only on the same conditions as 
its companies enjoy in the 
respective foreign markets. 

The March 24 hearings are 
related to a Bill introduced by 
Senator John Danforth, the 
Republican from Missouri, who 
is the sub-committee's chair- 
man. That Bill embraces recipro- 
city provisions. 

The Administration has 
started to narrow down the 
issues on which it thinks 
congressional action would be 
suitable. This became dear last 
week when Mr William Brock, 
the U.S. Trade Representative 
and a member of the White 


House staff, came out strongly 
against sectoral reciprocity 
legislation. 

This type of legislation 
would permit, within the scope 
of one industry, U.S. regulatory 
agencies to take action against 
another country limiting acppgs 
to UB. products. 

Mr Brock was immediately 
concerned with a telecommuni- 
cations bill which would give 
the Federal Conun uni reg ions 
Commission the power to 
retaliate against import from 
countries not providing the 
same measure of access to their 
markets as the U-S. offers them. 

Such retaliation “could not 
be productive.” he said. The 
U.S. might have a weapon 
which would be pointing at 
itself. He wondered whether the 
supporters of such a bill would 
take the same attitude if 
another country sought to apply 
the same principle to areas 
where the U.S. has import res- 
trictions, like textiles or agricul- 
ture. 

Trade specialists in Washing- 
ton have interpreted these 
remarks as an attempt by the 
Administration to control a fire 
which it started itself. 

This refers to the belief that 
the uncertainty of the Adminis- 
tration’s approach to the 
reciprocity issue implied sup- 
port. Officials appeared to give 


tacit approval to the idea, 
because of their sympathy with 
the motives which inspired ii — 
mainly the perception that the 
U.S. is at a disadvantage to -the 
face of aggressive Japanese 
exporting to a relatively narrow 
group of products and the 
belief that Japan does not offer 
adequate access to its own 
market 

Also, the Administration did 
not oppose the reciprocity pro- 
visions in the Telecommunica- 
tions bill to its early stages, 
thereby implying approval of 
the concept it embodied. 

Mr Brock's late opposition is 
therefore considered to repre- 
sent a stiffening of attitude 
towards measures which, it is 
widely believed to Japan and 
Europe, could be against the 
principles of the General Agree- 
ment on Tariffs and Trade 
(GaiGt) and which could lead to 
the resolution of trade issues 
on a bilateral basis rather than 
a multilateral one. 

A reversion to the settlement 
of trade disputes on a bilateral 
basis, which has appeared 
implicit in bills before the U.S. 
Congress, is feared because it 
might lead to a fragmentation 
of the international trading 
system. 

But Mr Brock’s statements do 
not yet constitute a definitive 


stand for the Administration. 
The Trade Representative’s 
office is responsible for trade 
negotiations but the administra- 
tion of existing trade agree- 
ments is to the hands of the 
Commerce Department. 

At the same time there 
are other departments — State, 
Labour. Agriculture, Treasury 
— which also have a voice in 
trade policy-making. There arc 
intensive discussions taking 
place in Washington among 
these departments about the 
reciprocity issue, and it is by 
no means clear that the Trade 
Representative's office will 

emerge on top. 

At .tins level of political 
debate and contention, it 
appears that Mr Brock is seek- 
ing to do two tilings. First he 
wants to lay down a position 
to the inter-departmemoJ dis- 
cussions by defining what is not 
acceptable about reciprocity, 
while leaving open what is. 
Second, he wants to act as a 
brake on the growing bitterness 
in Congress about Japan, which 
has led to the adoption of the 
catch-all slogan of reciprocity. 

Whether this approach will 
prevail within the Administra- 
tion is not yet clear. Mr Maicom 
Baldrige, the Commerce Sec- 
retary. for example, lias con- 
sistently appeared to be more 


Senator John Danforth: 
pushing for trade reciprocity 

outspoken in his sympathy for 
congressional feelings on recip- 
rocity than Mr Brock. 

At the same tune, however. 
Commerce Department officials 
play down differences, contend- 
ing that although Mr Baldrige 
lends to be outspoken, both ho 
and Mr Brock sing the same 
song — they simply have dif- 
ferent refrains. 


Japan a ‘scapegoat for trade policy failure by West’ 


BY BRtj KWNDARtA IN GENEVA 


WESTERN countries are 
using Japan as a scapegoat for 
failed economic and trade 
policies instead of concentrat- 
ing on meeting the challenge 
of Japanese competitiveness, 
according to the head of the 
Geneva-based General Agree- 
ment on Tariffs and Trade 
(Gatt). 

In a speech delivered to the 
East Aslan Association in 
Hamburg but distributed in 
Geneva, Gatt’s Director- 


General, Mr Arthur DnnkeL 
also strongly attacked insist- 
ence by the U.S. and some 
Western European countries 
on reciprocity in trade. 

“The problem of competi- 
tion with Japan has begun to 
assume the proportions of a 
crisis, though in reality it is 
only a symptom of more 
genera] problem — Japan is 
only the forerunner of a 
series of highly efficient new- 
comers on world markets for 


manufacturers;*' he s\id- 
“ The West appears mes- 
merised by the spectacular 
productity of Japanese indus- 
try. bnt the far-sighted 
Japanese are already worry- 
ing about' (South) Korea. 
India and. in 10 years per- 
haps. China," he added. 

“ Every government bas a 
need (n find scapegoats ” when 
its policies do not work, hut 
the only permanent solution 
is for Western economies to 


raise their productivity to 
Japanese levels. 

Reciprocity in trade im- 
possible to achieve because 
one side alone cannot decide 
wbat reciprocity is. Conduct- 
ing trade on the basis of strict 
reciprocity "implies repudia- 
tion of existing international 
obligations” and opens the 
road to chaos on both trade 
and money markets. 

" The tendency towards 


bilateralism and sectoralism 
in trade policy is the greatest 
present danger both politic- 
ally and economically to order 
and prosperity in the world 
economy." Mr Dnnkel warned. 

“More profoundly, it en- 
dangers the very possibility 
of maintaining the interna- 
tional economic co-operation 
which has made possible (he 
progress of the last 30 years,” 
he added. 



















4 


Financial Times Monday Mardt 




UK NEWS 



Commercial 
vehicle 
sales fall 
by 7.9% 

By John Griffiths 

THE UK commercial vehicles 
market resumed its depressed 
course last month after the 
boost provided in January by a 
heavy sales promotion for the 
Ford Transit medium van. 

The Society of Motor Manu- 
facturers and Traders’ statistics 
show total February sales of 
16.125 — 7.9 per cent below the 
February, 1981, level, when the 
market was already in deep 
recession. 

Although the distorted Janu- 
ary figure has lifted total sales 
so far this year to 37,244, about 
8 per cent (higher than in the 
first two months of last year, 
they are running 26.5 per cent 
below the opening months of 
19S0. 

Importers continued to grab 
a larger slice of the diminishing 
cake. They took 35 per cent of 
the market in February against 
28 per cent last year. 

There are still few signs of 
the long-awaited upturn in the 
hardest hit market, for trucks 
proper over 3.5 tonnes. Sales 
of these reached 3,422 last 
month, compared with 3,576 in 
February last year. 

Both Ley land Vehicles and 
Bedford showed large drops. 
The former’s performance 
reflected the latest round of 
industrial troubles, while many 
Bedford customers were await- 
ing a new range of models. 

Where gains have been made 
they have been confined almost 
entirely to importers. 

Volvo, with manufacturers in 
the UK; Seddon Atkinson, and 
the independent ERF were the 
only UK-based makers to show 

gains. 

The medium van market also 
fell back. Registrations totalled 
6,313 against 7,359 in February 
last year. However, this was a 
relatively bright area for BL. 
Sales of its Sherpa vans, made 
by Freight Rover, rose to 635 
(559). Sales in the year to date 
are running 26 per cent ahead. 

Car-derived van sales fell to 
'5,080 from 5,316. 

Registrations of light four- 
wheeled drive vehicles rose to 
998 from 840. Land Rover, 
which accounts for nearly 60 
per cent of the market* 
increased sales by 19.7 per cent. 


Heavier lorry plans expected soon 


BY LYNTON MCLAIN, TRANSPORT CORRESPONDENT 


THE GOVERNMENT is 
expected -to lay before parlia- 
ment its final and much- 
redrafted proposals for heavier 
lorries later this week or next, 
despite continued criticism from 
Tory backbenchers. local 
councils and environmental 
groups that the proposals 
shovel be dropped. 

The new upper legal limit on 
lorry weights is likely to be set 
at 38 tonnes gross laden weight, 
not 40 tonnes as proposed in 
the white paper on lorries. The 
original plan to allow existing 
32.5 tonne lorries to operate at 
34 tonnes is expected to be 
dropped altogether and the 
Government is likely to take 
action to encourage local 
authorities to enforce existing 
legal powers to control lorries. 

This action, however, ds 


likely to fall far short of that 
recommended by the Annitage 
inquiry which said local authori- 
ties should set up " lorry action 
areas” to control lorries and 
pass the higher costs on to lorry 
operators. 

Lorry taxes will also be 
changed; there will be substan- 
tial rises in vehicle excise duty 
for some of the heaviest lorries. 

The most likely forum for 
the changes is tomorrow’s 
Budget when the Government’s 
plan to tax lorries on the basis 
of laden weight and the number 
of axles is expected to be con- 
firmed. At present lorries are 
taxed on the basis of their un- 
laden weight and many of the 
heaviest lorries fail to cover 
their road costs. 

Proposed tax changes are part 
of the Government’s strategy to 


ensure that lorry operators pay 
their fair share of road costs. 
More than. 250.000 lorries over 
12 tonnes gross weight are 
expected to be affected by 
changes in vehicle excise duty. 

Lighter lorries at the moment 
pay more tax than is needed to 
cover their road costs, while 
some of the heaviest lorries pay 
less than they should. 

In 197980 the heaviest 
lorries, those of 32.5 tonnes 
gross laden weight on four 
axles, failed to cover their road 
costs on average by £500 each, 
14 per cent of their road costs. 
Total taxes, VED and diesel tax 
came to mgs» than £3,000 for 
each 32.5 tonne lorry in 1981. 

There is also likely to be a 
reduction in the relative tax 
harden of similar weight 
vehicles with five axles because 


these currently pay up to 35 per 
cent more in tax than is needed 
to cover their road costs. 

Vehicle excase duty for all 
cars and lorries was increased 
by 15 per cent in last year’s 
Budget 

• Mr David Crouch, Conserva- 
tive MP for Canterbury and a 
vigorous opponent of the 
Governments lorry plans, said 
last week that the expected 
climb down by the Government 
on the 40 tonne proposal would 
still not be enough to make him 
change bis ” implacable ” oppo- 
sition to heavier lorries. 

Mr Crouch was one of 11 Tory 
backbenchers wbo voted for a 
Labour opposition motion in 
December. He favoured phased 
changes, with environmental 
protection measures coming in 
before increases in lorry 
weights. 


Fiat unveils Bedford aims to boost truck sales 

UCW models BY KENNETH GOODING, motor industry correspondent 


By John Griffiths 

THE product-range overhaul 
through which Fiat, like BL, 
has sought t-o reverse flagging 
sales, continues in the UK with 
the launch this week of revised 
versions of the Mirafiore, Fiat’s 
contender in the all-important 
medium saloon market. 

The previous basic body shell 
is retained. New overhead cam- 
shaft engines of 1.4 and 1.6 
litres replace 1.3- and 1.6-litre 
pushrod-engine models. The 
twin overhead camshaft Super- 
mirafiore and ’Sport are dropped 
for a two-litre Supennirafiore. 

Substantial specification 
changes make price comparison 
with previous models difficult 

In line with Fiat’s price cut 
of 10 per cent across the hoard 
last year, the new top-range 
Supennirafiore, with 110 mph 
maximum, electric windows and 
centra] locking, has a list price 
including taxes of £5,244. The 
cheapest is £4,494. 

This year Fiat has launched 
a top-o£-the-range Strada and 
a sports model. A range of the 
127 hatchback will soon be in- 
troduced, followed in early sum- 
mer by a heavily revised version 
of its 132 top model called the 
Argenta. 


GENERAL MOTORS intends to 
push its Bedford subsidiary 
back into first place in the UK 
truck market. It also intends the 
company to play a major role in 
the groups “world truck” 
programme. 

This was made clear at the 
weekend by Mr John Fleming, 
the recently-appointed chairman 
and managing director of Vaux- 
hail Motors of which Bedford 
is a subsidiary. 

To emphasise GM now means 
business in the heavy commer- 
cial market, Bedford today 
unveils a restructured and 
strengthened line-up of its 24- to 
44-tonne TM trucks. 

Some £3m was spent on 
re-engineering the old TM 
range, first introduced in 1974. 
A further £2.5m went on tooling 
costs. The trucks will be pro- 
duced at Bedford’s purpose- 
built plant at Dunstable. Bed- 
fordshire, which cost £7 .5m and 
opened in October 19S0. 

The Dunstable plant built 
only about 2,000 trucks last 
year and was working at 15 per 
cent of capacity. This was partly 
because of the severe recession 
in -the UK marker. 

“We need to build at least 
5,000 a year or 75 per cent of 
capacity to justify the invest- 
ment and we intend to build 


VOLVO 


Notice is hereby given that a Special Meeting of AB 
Volvo will be held at Svenska Massan, Gothenburg. 
Sweden on Wednesday, 24th March, 1982 at 4.30 p.m. 

The Meeting will consider and vote upon the 
decision of the Board of Directors on 27th January, 1 982 
to make a new issue of shares comprising (a) an issue by 
way of rights to existing shareholders and (b) an issue to 
employees of the Volvo Group resident in Sweden. The 
proposed rights issue is to be made on the basis of one 
new share at a price of SEK1 OO per share for every five 
shares held and will involve an increase in the share 
capital of the Company of up to SEK278,784,200. 
Employees will be entitled to subscribe for a maximum of 
1 50 shares per person at SEK1 00 per share, involving an 
additional increase in the share capital of the Company of 
up to SEK25,000,000. 

The record date for the proposed share issue will be 
Thursday, 29th Aprif, 1 982. 

The Special Meeting will also consider a proposal 
by a shareholder with respect to a new issue of shares 
under the terms of which employees or pensioners of AB 
Volvo would be able to subscribe for one new share for 
each four shares held at a price equivalent to the nominal 
value, or SEK60 or SEK75. 

In order to take part in the Special Meeting, 
Shareholders must be registered in their own name at 
the Swedish Securities Register Centre (VPC) by Friday, 

1 2th March, 1982 and must also notify AB Volvo of their 
intention to participate not later than 12.00 noon, Friday, 
1 9th March, 1 982. Shares registered in the name of 
nominees should be temporarily re-registered in the 
names of the Shareholders themselves to enable them to 
participate. Several banking days should be allowed for 
re-registration to be effected. Holders of share subscription 
certificates are to be regarded as Shareholders for this 
purpose. 

Notification of participation in the Special Meeting 
may be given: 

By telephone; by calling 4631-59 21 50 (direct 

number} or via the Volvo switchboard, 

4631-59 00 0 0. 

By mail, addressed to Legal Department AB Volvo, 

S-405 08 Gothenburg, Sweden. 

In providing such notification, the Shareholder 
should state his Name, Personal (registration} Number 
and Address and Telephone Number. 

Shareholders wishing to appoint a proxy to 
participate in the business of the Meeting on their behalf 
should notify the Company well in advance of the 
Meeting giving the name of their proxy, A proxy need not 
be a Shareholder of AB Volvo. 


By Order of the Board 

Claes Beyer, Secretary, AB Volvo 
S-405 08 Gothenburg, Sweden. 


8th March, 1982 




them,” declared Mr Des Savage, 
Bedford’s director of market- 
ing. 

The company’s share of the 
28-ton-plus truck sector has been 
languishing at only 2 to 3 per 
cent “We aim for at least 10 
per cent with tins strengthened 
range.” said Mr Savage. 

The group has taken a funda- 
mental look at Bedford and its 
prospects — which might have 
involved closing the company. 
Instead the investment pro- 
gramme had continued and “ we 
have changed the way we run 
the business.” 

Truck manufacturing has 
been split away from car 
assembly and a director of com- 
mercial vehicle manufacturing, 
Mr Ed Naegsli, had been 
appointed — for the first time in 
Vauxhall’s recent history. 

To boost exports, Bedford 
had set up new zone offices in 
both Singapore and Dubai while 
an African tone office had been 
established at the headquarters 
in Luton. 

Last year, exports fell by 
nearly half to 24,000, mainly 
because of the strength of the 
pound. Sales to the best over- 
seas market, Nigeria, held up 
but the Pakistan truck market 
slumped 

Mr Savage said that at 81-80 


to the pound exporting trucks 
was only marginally worthwhile 
but if there were a 10 to 15 per 
cent drop in sterling it would 
be very profitable now that 
Bedford had improved produc- 
tivity and cut costs. 

Mr Fleming admitted that 
GM in the past had not given 
trucks the attention their profit 
potential deserved. The group 
had now set up a “ world 
truck” project to see which 
components could be shared by 
Bedford, Chevrolet hi the U.S n 
GM do Brazil and, possibly, 
Isuzu, the 34 per cant-owned 
associate in Japan. 

“ Bedford could not afford to 
go it alone to develop products 
for the future," he said, “but 
we can afford it with partners. 
And our partners are from 
within our own group — we just 
didn’t get round to speaking to 
them in the past. "We can get 
all the economies of scale we 
need within GM without going 
■ outside ” 

The revamped TM range has 
62 models incorporating four 
new engines, two each from 
Detroit Diesel, a GM subsidiary, 
and Cummins, which, with Bed- 
ford’s own unit, cover eight 
power ratings from 222 brake 
horsepower to 387 bhp. 


Change in sick note rules 
‘poses major problems’ 


BY GARETH GRIFFITHS 

EMPLOYERS need to consider 
new absence control procedures 
when sick note regulations are 
changed in June, a report pub- 
lished today by the Engineering 
Em p Ivors' Federation says. 

The changes mean that 
people can certify they are 
unfit for work without produc- 
ing a medical note for the first 
seven days of illness, instead of 
the present three. Doctors 
hare pressed for this because, 
they say, sick note claimants 
have cluttered up their waiting 
rooms and increased the burden 
on their time to the detriment 
of the more seriously ill. 

The chat ge posses substantial 
problems for companies, -the 
EEF says. A proper procedure 
should include rules whereby 
workers notify their employers 
of at-jence on the first day and 
at intervals afterwards. They 
should also provide details of 
the illness. Furthermore, there 
should be a periodic review of 
the whole procedure. 

At present, the EEF finds, 
many companies operate more 
stringent tests for their manual 
employees than for their white- 
collar staff. The change-over in 
June should provide an oppor- 
tunity to bring requirements 
into line. 

In a guide for its 6,000 
member companies, the EEF 


has drawn up a checklist of 
measures to be taken when 
introducing an absentee control 
system. These indude deriding 
which employees should be 
included : the days to be 
covered; communicating 

planned changes to employees; 
the training of supervisors in 
the new methods; the protec- 
tion of confidentiality and the 
amendment of employment con- 
tracts as appropriate. 

The main importance of 
introducing a proper scheme, 
apart from fears that there 
could be an upsurge in 
absenteeism with self-certifica- 
tion, is that .the right of doctors’ 
statements, before they are 
forwarded to the social security 
office, is widely used to verify 
sickness as a condition of pay- 
ing sick pay. 

The Government has indi- 
cated that self-certification for 
an illness lasting seven days or 
less will continue after tbe 
introduction of the new 
employers’ statutory sick pay 
scheme in April next year. - 

Employee Self-Certification of 
Short-Term Sickness Absence. 
Dispatch Department, Engineer- 
ing Employers’ Federation, 
Broadway Rouse, Tothill Street, 
London SW1H 9NQ. Price £2 
for EEF members, £5 non- 
members « 


Philips video disc launch 
fixed for end of May 


BY ELAINE WILLIAMS 

A NEW LAUNCH date has been 
set by Philips, the Dutch elec- 
tronics group, for its revolution- 
ary videodisc player. 

The end of May will see the 
UK introduction of LaserVision, 
which has already had long 
delays due to technical prob- 
lems in producing the disc to 
be played on the Philips 
machine. 

Videodiscs are similar to con- 
ventional audio records but pro- 
duce television pictures and 
sterio sound when played on a 
special machine. 

JVC the Japanese consumer 
electronics company, recently 
announced that its rival 
machine would appear to the 
UK trade in May, followed by a 
consumer launch in September. 

RCA, in the U.S.. has already 
introduced another version of 
the videodisc, the simplest tech- 
nically of the three incom- 
patible systems on offer. So 
far it has met with limited 
success. 

LaserVision initially win be 
available only in London and 
the Home Counties. 

It wil cost about £500, wife 
the pre-recorded discs seBing 
for about £15. 

The machine uses a laser 
stylus to “ read ” the video and 
sound information stored as 
tiny pits beneath the surface of 
an optically reflective disc. 

Problems with the produc- 
tion of discs at Philips’ factory 
at Blackburn caused the 


original delay. Philips has com- 
mitted more than £12m in -disc 
production -in the UK. 

The JVC VHD system 
resembles more closely a con- 
ventional record-player, with a 
diamond stylus running ovar 
the surface of a grooveless eleo. 
tri rally conductive plastic disc, 
covered by a spiral of tiny 
micropits. 

Its machine will cost between 
£300 to £350 wife discs 
similarly priced to Philips. 

The announcement comes at 
a tune of scepticism about the 
potential market for videodiscs 
because video cassette recorders 
are so popular. 

Industry observers fear that 
the videodiscs have come too 
late into the market and at too 
high a cost It has been esti- 
mated that each company in- 
vested more than £100m in their 
respective videodisc systems. 

Sony, one of the leading 
video-cassette recorder-makers, 
has been consistently, cautions 
about videodiscs and has no 
plans to introduce its own 
system. 

However, JVC, which is sup- 
ported by Tboro-EMI in the UK, 
and three other Japanese com- 
panies, believes that consumers 
wiR be attracted by the higher- 
quality disc system. 

The videodisc can be used 
for simple videogames, and for 
self education. JVC and Philips 
say there is also a market for 
the disc in industrial and other 
forms of training. 


Orion Royal 
Bank in 
airline talks 
with Laker 

By Alan Friedman 

ORION Royal Bank, the Royal 
Bank of Canada subsidiary 
which failed in its attempt to 
construct a rescue package for 

L?k<»r Airways last month, 
said yesterday it had. held 
Miles recently with Sir Freddie 
Laker about his Lonrho- 
backed airline project 

Orion is understood to have 
discussed the possibility of a 
charter airline operation bat 
has not been in touch directly 
with Mr Roland “ Tiny ” Row- 
land. chief executive . of 
Lonrbo. 

Orion is one of several City 
Institutions approached by Sir 
FVeddie in his search for 
b arking for a new airline. 

Mr Christopher Chataway of 
Orion said yesterday: “We 
have had discussions with Sir 
Freddie over the past few 
weeks about a number of 
different ideas, hnt it is nmeb 
too sooon to say whether any- 
thing win come of it” Re 
that “nothing is immi- 
nent.” 

A prospectus for fee Laker 
revival project has been cir- 
culating in the City, hot de- 
tails are understood to have 
been modified significantly 
since fee document was com- 
pleted a fortnight ago. 

One banker who had seen 
fee prospectus said yesterday: 
“I think the old prospectus 
has been overtaken. It looks 
very unlikely that Laker can 
get the scheduled airline 
licences in time for this Som- 
mer’s season. That particular 
scheme looks like a dead 
duck.” • 

While Sir Freddie has been 
working wife Mr Rowland on 
a comeback plan, several job 
offers have reportedly been 
made to him. Sir Freddie is 
said to have been asked 
whether he would be interested 
In serving as an executive in 
the airline industry. 

Support for 
lead-free petrol 

NEARLY eight out of 10 
people believe lead-free petrol 
should be introduced in . 
Britain. . even if it means 
prices rising. A MORI opinion 
poll shows feat nine out of 
10 people think lead in 
petrol Is a health hazard anil 
should be banned. 

The MORI poll was conduc- 
ted for fee Campaign for 
Lead-Free Air (CLEAR). 
Figures show feat 46 per 
cent believed it to be a “ very 
serious hazard,” 33 per cent 
“ a fairly serious hazard,” 
and 12 per cent “only a 
slight hazard.” Only four per 
cent did not think it a 
potential hazard and the rest 
did not know.- 

Liverpool rejects 
te ache rs’ claim 

LIVERPOOL City Counci] 
has made it clear it is not 
prepared to meet the 
teachers' national pay claim 
of II to 12 per cent from 
April. Pupils could be sent 
home early later this week 
as staff work to rale. 

Sir Trevor Jones, council 
leader, said yesterday the 
council could not go above 
the employers’ offer of 3.4 
per cent. 'He tinned down 
appeals from officials of fee 
National Union of Teachers 
to agree to fee increase to 
avoid classroom disruption. 

Pharmacists 
seek more pay 

CHEMISTS WANT the 
Government to pay them more 
for their expert knowledge as 
well as for dispensing, 
medicines. The 9,500 pharma- 
cists who dispense National 
Health Service prescriptions 
in En g l a n d and Wales, -say 
fee Government expects too 
much for too little. 

At their annual conference 
in London, • fee Pharma- 
ceutical Services Negotiating 
Committee voted to press tbe 
Government for an extra 
pharmacists’ allowance. 



against EEC role 


BY ROBIN PAULEY 

THE GOVERNMENT’S plans 
for . an Audit Commission, and. 
fee way in which auditors 
approved by it can work, might 
run contrary to a proposed EEC 
directive on audit. 

Although the EEC examina- 
tion of audit procedures refers 
to fee . audit of private com- 
panies, would sot therefore 
cover directly" local authorities, 
both the public and private 
sector accountancy organisa- 
tions in Britain have been work- 
ing hard dnring fee past two 
year to put public and private 
sector audit onto the same foot- 
ing, operating under fee same 
rules and practices wherever 
possible. 

If fee relevant EEC directive 
is finally adopted — which is 
not likely this year but could 
happen before fee Audit Com- 
mission takes effect in April 
next year — different rules 
migh t apply to private and pub- 
lic sectors. . 

The argument concerns fee 
independence of audit and the 
issue erf whether firms carrying 
out an audit for a company Cor 
a local authority in the case of 
fee Au dit Commission) Should 
also be allowed to provid e con - 
suHancy work for Ibe same 

Mr Christopher Price. Labour ■ 
MP for Lewisham, has made an 
issue of fee' subject in the com- 
mittee stage • of fee Local 
Government Finance (No 2) 
Bill considering tbe Audit Com- 
mission plan, and has detailed 
examples of conflicts of interest 
which he feeds haw arisen in 
fee past because of fee same 
firm providing both audit ana 
consultancy services. 

One part of fee EEC directive 
would have made this impos- 
sible in private company- audits. 
But the Government, under 
pressure from fee private sec- 
tor accountants, forced a 
retreat in Brussels. However, 
other articles remain, including 
one which says audit must be 
done by people M of good repute 
and not carrying on any activity 
of such nature as to cast doubt 
on their independence “. 


The Institute' of Chartered 
Accountants is concerned that 
auditors should not be able *o 

pMlS-ft inform^ to . 

obtain other types of .b usin ess 

but feel? fe w if * S2S5 • 
between feat aDd ^rk arismg 
out of an audit providing there 
is no conflict of interest. 

Auditors in both PffitiC And 
private secrets are obliged by 
strict rules to retain cjgecgniy 
in their approach to audit. 
Strong ethical standards exist to 
preserve this objectivity. 

An auditor may feel it is 
better to call iu outside consul- 
tants to deal with something 
identified in . ah audit But. 
providing be did not feel his 
objectivity was nnpared. he 
could offer advice and help, and 
was often expected to. by ms 
client, thereby saving lam time 
and money, fee institute saga. 

Labour members opposing 
fee Ruy and to' some; public 
and private sector auditors, are 
worried that the auditor decides 
for himself about his 
"objectivity”, They argue that 
consultancy and audit by one 
firm does cast doubt op inde- 
pendence^ and feat if It were 
allowed wife no safeguards by 
fee Audit. Commission, the 
independence of public sector 
audit would be less than feat 
proposed by the EEC for private 
companies. 

The' Government accepts 
some of these arguments but 
is unlikely to introduce amend- 
ments to change., the Audit 
Commission plans. • ;• •• 

A deal has now been struck 
with the Opposition to end fee 
committee stage of the Bill on 
March 25. In return, fee . 
Government wiH accept four 
Opposition points (it was plan- 
ning to introduce two of them) 
but none of them deals vrtth 
feds Issue. . 

Tins self-imposed "guillotin- 
ing ’ 'was agreed after Mr Tom 
King, Local Government Minis- ■ 
ter, decided fee Bill was not ■ 
proceeding quickly enough so 'i 
he forced a sitting until 1 am - 
last week. . 


Yorkshire councils fear 
loss of aid by EEC 

BY ANTHONY MORETON, REGIONAL AFFAIRS CORRESPONDENT 


THE WHOLE of Yorkshire and 
Humberside stands to lose 
European Regional - Develop- 
ment Fund aad if EEC propo- 
sals for revising fee ; fund's 
guidelines are approved by fee 
Government, fee West York- 
shire County Council said. 

It has already given evidence 
to select committees in both the 
Commons and fee Lords study- 
ing the Commission’s ideas, and 
has suggested that criteria for 
selecting priority regiozs be 
widened and decisions based on 
more up-to-date information. 

The council is particularly 
concerned that the level of un- 
employment ■— the barns for 
selecting regions needing aid — 
would be based on 1977 statis- 
tics. . 

'West- Yorkshire, with South 
Yorkshire and Humberside, 
fears feat the Government may 
not be malting a strong enough 
case for fee areas at official and 
ministerial level in Brussels. 

it is understood feat fee 


Welsh plea for 
new M4 link 

By Robin Reeves 

THE WELSH Confederation of 
British Industry is launching an 
appeal for an immediate start 
to plans for a second M4 road 
link across fee River Severn 
because it is worried, feat delays 
On the existing bridge may hit 
Welsh Industry and jobs: 

Early warning lanfe restric- 
tions were introduced last week 
after tests of fee bridge hangers 
showed that they might not pro- 
vide an acceptable margin of 
safety; if fee bridge were carry- 
g a large number of heavy 
vehicles ail at once. 

-According to the Department 
of Transport this might occur 
in the early morning. 


Government is well aware of 
the needs of such areas, and 
those in the South-West 

The concern is because lie 
EEC proposed that the quota 
section of its regional aid, 
covering 95 per cent of regional 
disbursements, should account 
in future for only 80 per cent. 

But since the EEC wants to 
concentrate the quota section 
of aid on tbe four “poorest” 
Community members— Britain, 
Italy, Ireland and Greece— the 
UK would stand to receive a 
greater share of regional funds 
than it does at present. 

The Government has wel- 
comed fee concentration of s33 
on Britain and the other three j 
countries though this has:’ 
aroused opposition in France, > 
Belgium and Holland. . 

But it is fighting to ensures 
that Britain decides which part ’ 
of the UK is assisted, rather" 
than having to rely on- geo- 
graphical areas <frawjr--ap : 
Brussels. 

The Government is thought to 
oppose -excluding . r : relatively.-, 
small parts of the country wife 
high levels of unemployment, 
such as Mexborough, South ’ 
Yorkshire, or Ilfracombe, 
Devon when fee EEC has drawn . 
wider areas in which jobless 
totals are below the national 
average. 


BASE LENDING RATES 

^ Bani k_ 13$% . Robert Fraser 24- or 

Aided Irish Bank ...... .134% Grindlays Bank tlMv. 

American Express Bfc 131% ■ Guinness Mahon ...." is!®- 

Amro Bank ■ 13*V ■ Hambros Bank l3i« 

A “J? a <£ er Heritable. & Gen. Trust I3$% 

Arbufenot Latham ... 14 % ■Hill Samuel 5131 J 

Associates Cap. Corp. 14 % C. Hoare & Co. +131* 

Banco de Bilbao 13}% Hongkong * Shanghai 

S 0 *? 13}% Knowsley & CtLXtd. ... 14 % 

Bank Hapoalim BM 13}% . Lloyd* -Batik later 

Bank I*umi (UK) pic 18}% MaUinhall-Limited’";" 131$ 
Bank of Cypres ..... 13}% „ Edward Manson & Co. 14} % 

Bank Street Sec. Ltd. 13*% .Midland Bank„„ 134% 

Bank of N.S.W. 13*% * Samuel Montagu 134% 

Banque Beige Ltd. ... 13}% . ■Morgan GredfelL \ 14 * 

Banqne da Rhone et de National - WestnUnster'l34«r 

la Taraise SA. 14 % Norwich . General Trast 134$ 

Barclays Bank _ 13*% P. S. Ref son & Co....l3*% 

Beneficial Trust Ltd M Rofeurghe • Guarantee 14* % 
Bremar Holdings Ltd.. 14}% ,E. S: Schwab , 13!% 
Bristol & West Invest. 15- % . .Slavenhurg’s Bank . . 13I® 
Brit. Bank of Mid. East 13} % . Standard Chartered ...Hl3}% 

■ Brown Shipley H % . Trade Dev. Bank 134% 

Canada Perza’t Trust.. 14 % Trustee Savings, Bank wi*: 
Castle Court Trust Ltd. 14 % . TCB Ltd. igia 

Cavendish CTty Tst Ltd. 15} % United Bank of Kuwait j3}% 

S^Lt* 14 % WhJteaway Laidlaw .;. 34- % 

Cedar Holdings .. ...... 14 Williams &Glyn* 134% 

l Charterhouse Japhet.. 14 % - Wlntrust Secs. Ltd. ... 13i« 

^ortartons V -—.14 % Yorkshire^ank ....^... 13} % 

Citibank Savings - fl4 % .m Members Of -the Accepling Houam 

Clydesdale Bank 13}% " Committee, , . 

C. E. Coates 14 % * 7-day *PW»t» tl.00%. ‘Umonth 

Consolidated Credits... 13}% ;.t#m .. SAqoo/12 

Co-operative Bank *134% ■ r™ 1 ™ j 3 - 6 *-' ; - 

Corinthian Secs. ...... I3j% -f vndar 

il 

E^fl Trust ...... ......... 3 Call deptnia eijxd a ad <w*r 

E.T. Trust ; — 13}% 11%. - -■ ■ 

Exeter Trust Ltd. 14}% -fl 2W«y deposit* arar £1.000. 12%, 

First Nat Fin. Corp.— IB} % 5. Demand' Ti%l‘ 

First Nat Secs. Ltd. ... 16}% 'I Mortgtga bes« ret*! -- 


BANGOfiPUNTA 


CAPITAL COMPANY 

NOTICE OF 
.CONVERSION 
PRICE ADJUSTMENT 

• ,5V4% Guaranteed 
- Convertible 
Debentures Due 1988 
(Convertible into 
Common Stock of 
, RwWrPunta 
' /.Corporation) 

*TjoHce “? torelv teen 

Wat, effective as of January 
\ 1982, the conveS 
price of Bangor Panta lnter- 
^lonal ; Capital Company 
Guaranteed Conver- 
tible Debentures Due 1988 
was adjusted and such ad- 
justed conversion once is 
$36.80, : ; 

MwganC. Brown, Hi 

Secretary 

IWnnaiy 17,1982 , 


One Gremwich Plan 
P.ttrBox1776 

Srsswfltii, Cflanesticnt Q685M77S 





Financial Times Monday Mar ch 8 1982 


UK NEWS 


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ICI makes big 
return to coal 


BY MAURICE SAMUELSON 


h 


IMPERIAL Chemical Industries, 
Britain’s biggest manufacturing 
company, is taking a decisive 
step towards reintroducing coal 
for a substantial part of its 
energy requirements. 

The conversion of a large UK 
chemical works, ■ to be 
announced today, will boost 
I Cl’s coal consumption by 50 
per cent. It is the first of a 
number of conversions under 
review which would increase 
ICI's coal usage by more than 
lm tonnes a year, four times 
the present leveL 

The conversions are intended 
to restrain the rises in Id’s 
total fuel bill, mainly for oil 
and gas, which last year ex- 
ceeded its UK wages bill of 
£630m. 

The first re introduction of 
coal will be at Lo stock, one of 
the company's three factories 
in mid-Cheshire which make 
soda ash for the glass and 
chemicals industries. Its two 
large steam raising boilers are 
being adapted.- at a cost of 
£8.5m to bum up to 120,000 
tonnes of coal a year. 

The boilers were switched 
from coal to oil more than 20 
years ago and are to be re- 
stored to their original use. The 
Government, as part of its 
policy of encouraging industry 
to use less oil, is meeting about 
25 per cent of the cost under 
its coal conversion grants 
scheme. 

ICI, which originally used 
coal as its main raw material 
as well as its primary fuel, said 
at the weekend that it was 
“turning the dock back” t6 
the days before the era of 
cheap oil. ... 

Mr Herman Scopes, the 
director for feedstocks, energy 
and raw materials, said there 
would be a “major shift" from 
oil and gas to solid fuel in the 
next few years. With the world 
oil markets fluctuating between 
glut and panic, the company 


would have to be flexible. 

Its present fuel requirements 
in tibe UK axe about 45m 
tonnes of coal equivalent. All 
but 250.000 tonnes of this is 
derived "from oil and gas. 

The company believes it can 
use at least another lm tonnes 
of coal simply by phasing out 
oil and gas at power or steam 
plants which were originally 
built for coal and which 'were 
converted after the Second 
World War. 

The next conversion is likely 
to be the private power station 
of the petrochemicals and 
plastics division at Wilton on 
Tees side. Originally built for 
coal, it now runs on oil, gas 
and waste gases and liquids. 

The company is considering 
-its restoration to coal at a cost 
of about £35m, enabling it to 
burn about 500.000 tonnes a 
year. The technical and com- 
mercial case for this invest- 
ment could be submitted for 
approval early next year, 
although current investment 
constraints mean that, like 
other conversions, it would 
have to take its place in the 
slow-moving queue for capital. 

The soda ash factories at 
Wilmington and W all es cote in 
mid-Cheshire are other plants 
which will be put back on coal. 
They will each burn about 
200,000 tonnes a year. 

A further 100.000 tonnes a 
year will be used at Stevenston 
in Scotland, part of ICTs 
organics division. 

ICI has received almost the 
maximum available under the 
Government coal conversion 
grants, introduced 12 months 
ago. 

It has also won favourable 
terms from the National Coal 
Board which will sell the coal 
for Lostock at below published 
list prices under a long-term 
supply arrangement. The cost 
of the coal at the pit-head will 
be £45m. 


CEGB 

chairman’s 


future 


in doubt 


By David FMilock 


THREE OF flie four full- 
time members of the Central 
Electricity Generating Board, 
whose contracts expire this 
spring, are expected, to be re- 
appointed by the Govern- 
ment 

They include hlr Dennis 
Lamer, who is responsible for 
the development and eon* 

struct! on programme. 

However, the Government 
Is unlikely to reappoint Mr 
Glyn England, the board’s 
chairman since 1977. 

Mr England has paid 
tribute to the improvement 
in tiie construction pro- 
gramme since Mr Lomer came 
to office in 1977 “when 
almost every power station 
construction site was in 
trouble to a greater or lesser 
degree.” 

He said the understanding 
reached at the Isle of Grain 
site had set the pattern for a 
national site agreement 
signed three months ago. 

The board’s two most re c ent 
projects — Drax fi (2,000 Mw 
eoal-fired) and Heysbam 2 
(L300 Mw unclear), were “ on 
time and within cost 
estimates.” 

Elsewhere 44 the challenge 
has been squarely faced and 
the results, so far, are 
encouraging." 

Nevertheless, Mr Lomer’s 
forthright style of. manage- 
ment and readiness to impose 
sanctions, such as withholding 
payment, to snppliers which, 
fail to perform well, has made 
him some enemies— speci- 
fically in the nuclear design 
and construction industry 
when initial efforts to produce 
a design for Sizewell B, 
Britain's first pressurised 
water reactor (PWR) power 
station went seriously awry. 


INSURANCE 


China adopts aggressive policy 


BY JOHN MOORE 


AN AGGRESSIVE policy is 
being adopted by the insurance 
industry in China winch is 
likely to add . to the extensive 
competitive pressures existing 
in world insurance markets. 

The People’s Insurance Com- 
pany of .China, a state-owned 
insurance company established 
in 1949, is extending its under- 
writing of domestic insurance 
business dn its own markets and 
reinsuring less in international 
markets. It is looking for 
increased participation i n wo rld 
insurance and reinsurance 
markets. 

Developments in China were 
disclosed last week at a London . 
conference. Reinsurance at the 



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Crossroads? by Mr Pan Lu-Fu. 
deputy manager of the People’s 
Insurance Company. 

The company transacted pro- 
perty, life and livestock insur- 
ance as well as crop insurance 
business until 1958 For the 
next 20 years it insured 
business related to China’s 
economic exchange with foreign 
countries, such as insurance on 
transport of China’s i mpor ts 
and exports, ships, aircraft, 
property insurance for for eign 
missions and foreign residents 
and International reinsurance. 

Over the past three or four 
years the range of insurance 
business underwritten in China 
has been extended. Risks 
underwritten include contrac- 
tors’ all risks, oil exploration, 
employers’ llab 1 lily, product 
liability and political insurance 
including war, confiscation and 
requisition by governments of 
property. 

In some regions the 
insurance protection offered has 
been extended to cargo trans- 
portation. motor and third party 
liability, and bull insurance. By 
the end of 1980 the amount of 
property insured had reached 
the equivalent of $72bn. 
generating premium income of 
8161m. 

With the increase of direct 
business, the company has 


reinsured its marine, cargo, 
marine hull, aviation, construc- 
tion and oil exploration in the 
international insurance markets. 
The group has reinsurance rela- 
tionships with 960 or more 
insurance, reinsurance and 
broking operations in more than 
120 countries and regions. 

The inward insurance 
premium for 1980 in the com- 
pany amounted to $123m. To 
reduce foreign exchange out- 
flow the company takes in a big 
amount of reinsurance from 
overseas markets on marine, 
fire, aviation and casualty and 
other non-marine reinsurance. 

If the Chinese are determined 
to retain conventional lines of 
domestic business, it is likely 
that the international reinsur- 
ance c ommu nity will have 
opportunities to reinsure the 
catastrophic types of risks. 
Large commercial projects in 
China or risks of a particularly 
hazardous nature could not be 
supported by present capacity. 

The company is establishing 
worldwide business connections. 
It has established a liaison office 
in ' London for developing its 
London market connections: it 
is a member of the South Place 
Syndicate on the New York 
Insurance Exchange and has 
established a joint venture with 
Americas. International Group. 



IF NOEL COWARD 
WERE IN LONDON TODAY, WHERE 
WOULD YOU FIND HIM? 


To start with, Mr. Coward would - 
be at THE SAVOY -he never stayed 
anywhere else. 

- He had his own suite of rooms 
overlooking Londons finest view of the * 

' River Thames. The suite is still there, 
for our guests, as are the other 200 
rooms in the Hotel, all individually 
decorated, appealing to different tastes. 
IfNoel Coward wbe downstairs, 
you might find him in the new 
■jT River Restaurant or the 
W American Bar, world famous since 
the creation of the Dry Martini. 

What about the cost? Well, 

Mr. Coward would find THE SAVOY 
less expensive than a number of 
other luxury London hotels. 

But then, that wouldn’t have 
been important. THE SAVOY was 
Noel Coward’s London home. 

Is it yours? 



LONDON 


Rw information and reservations 
telephone 01-836 4343, Telex 24234, 

The Savoy, P.O. Box 189, London WC2R 0£U 


Tax law muttermgs become a major row 


FOR MANY people in the City 
and industry, the most burning 
topic in tomorrow's Budget has 
nothing to do with the public 
sector borrowing requirement 
or money supply targets. They 
are anxious to hear how the 
Chancellor deals with the seem- 
ingly dry and arcane subjects 
of company residence, tax 
havens and upstream loans. 

The Inland Revenue has pro- 
posed major legislative change 
in these three areas. And while 
the proposals have been around 
in one form or another for 
about a year, it was only last 
-week that mutterings of dissent 
in specialised tax circles broke 
out into a major row. 

A range of blue chip UK 
multinationals warned that if 
the proposals stood they would 
consider moving their inter- 
national finance functions off- 
shore. With companies such as 
ICI, BAT Industries. Unilever 
and Shell arguing that legisla- 
tion should be postponed for 
further consideration, the hope 
is that it will not feature in 
the Chancellor’s speech. 

The Revenue wants to change 
the law because since 'exchange 
controls were abolished in 1979 
there has been no block on com- 
panies and individuals moving 
money abroad. Until then such 
movements required Bank of 
England approval and were 
monitored. 

The Revenue has its eye on 


David Freud reports on why companies are 
suddenly worried about tomorrow’s budget 


whar it sees as a classic abuse. 
A UK company might move its 
funds into a tax haven country 
where taxation is low or non- 
existent and earn interest there 
without the Revenue knowing 
anything about it. To add insult 
to injury, the tax haven sub- 
sidiary' might then lend its 
funds back to The parent— and 
the parent could even offset the 
interest payments against the 
remnants of its UK tax liability. 

The Revenue legislation seeks 
to curb this state of affairs in 
three ways. First, it changes the 
residence rules. A company will 
qualify .for residence only 
where the day lo day manage- 
ment is undertaken. Tt will no 
longer be good enough for the 
board of a company, to meet 
once a quarter in a tax haven 
country to establish residence 
there. 

Second, overseas companies 
under UK control will be tax- 
able in the UK if they are in a 
“ privileged tax regime. ” Such 
a regime is defined as any 
country in which tax paid is 
less than half of what it would 
have been in the UK. Com- 
panies will remain free of UK 
tax. however, if they pass one 


of three tests; the "genuine 
trading test," the “acceptable 
distribution test " or the 
’■ motive test. ” 

Finally, loans made to a UK 
company out of the profits of an 
overseas company become tax- 
able in a similar way to divi- 
dends. 

The trouble is that, as framed, 
this legislation could well bit 
many activities that have' 
nothing or little to do with lax 
avoidance. 

Several multinationals claim 
that the changeover in the resi- 
dence rules might affeet the 
sialus of subsidiaries. The one- 
off impact of a switch in terms 
of a clawback of lax relief 
already granted could be very 
costly. 

Looking ahead, some sub- 
sidiaries risk becoming dually 
resident and losing the benefit 
of some double lax treaty pro- 
visions. 

The “ privileged tax regime ’* 
is particularly disliked by the 
banks because it contains a dis- 
closure of information require- 
ment. They argue that without a 
guarantee of secrecy in hanking 
operations abroad, they .will 
simply lose business. 


Definitions are so tiShtJy 
drawn that the operation?- of 
many institutions — particularly 
financial ones— -will fail to meet 
ihe genuine trading test. Even 
multinationals which choose to 
use foreign holding companies 
miyhi fail the test. 

The hurdle of I he acceptable 
distribution is high, which 
means that many companies 
would have to rely on the 
motive test under which if 
would have to appear to the 
Inland Revenue that avuiduncc 
■if tax was noi “one uf ilu* main 
purposes" of any transaction 
nuking tip the profits. 

Moreover it will not be 
purely those subsidiaries in 
recognised tax havens ihai are 
at risk. The definition of a 
privileged lax regime is such 
that many companies believe 
that their U.S. operations could 
be caught in the nei. 

On the surface, the Iasi 
minute rush lo kill the pro- 
posals seems a til lie odd. The 
draft legislation w:u made 
available in early December, 
and follows the lines of a cun- 
imitative paper released at tlie 
beginning of I RSI (which drew 


a universally hostile response!. 

Companies' tax experts, how- 
ever, only got down to work 
in the New Year and have been 
busy drawing up their respon- 
ses for the Revenue against a 
February 26 deadline. Only in 
the last' week nr so have the 
implications percolated up to 
boardrooms. 


The worries grew a*’ 
panics in different sectors 
began to ponder the implica- 
tions of the “yellow peril “ — 
the title which the colour of 
the cover has earned the draft 
legislation. Would captive in- 
surance he sale? What about 
Eurobonds? Could one lease 
abroad? What would be the 
residence of managed funds? 

When the Institute of Fiscal 
Studies hclil a seminar on the 
subject last Wednesday the 
room in the Regent Palace 
Hotel was jam packed, and 
views wore expressed with rare 
vigour. 

It looks as if behind the 
concern of the audience lies a 
growing distrust uf ihe Revenue. 
Five years ago rhe Revenue was 
generally seen :«s a body which 
operated by consent. But it has 
iutluwed up its court victories 
over tax avoidance schemes this 
year with great aggression. No 
uiie last week seemed prepared 
to credit the Revenue with the 
discretion to operate a motive 
tesr. 


Private borrowing 6 upset Howe’s economic strategy’ 


BY DAVID HARSH 


INDIVIDUAL BRITONS have 
thwarted Sir Geoffrey Howe’s 
economic strategy by refusing 
to accept the cuts in tiring stan- 
dards imposed in the last Bud- 
get, according to a stockbroking 
study of the Government's 
monetary policy published at 
the weekend. 


Rather than accept the 
Government’s medifine, the 
personal sector borrowed 
heavily from (be banks during 
the last 12 months to offset 
higher taxes and main- 


tain consumption, says Mr Mike 
Osborne, economist at stock- 
brokers Grieveson Grant. 

This surge in bank loans 
helped to stop consumption 
falling last year, as it might 
otherwise have done during 
the recession, but it boosted the 
sterling M3 money supply to 
well above the Chancellor’s tar- 
get. This was in spite Of his 
success in keeping down pub- 
lic sector borrowing to planned 
levels during the 19S1-S2 finan- 
cial year, Mr Osborne says. 


The moral for Sir Geoffrey’s 
Budget tomorrow, is that “ a 
lower public sector borrowing 
requirement is neither necessary 
nor sufficient for a lower rale 
of growth of the money supply." 

Instead, should the Chancel- 
lor wish to control the quantity 
of money in the economy. Mr 
Osborne advises him to try to 
iofluence the borrowing require- 
ment of each sector of the 
economy. 

The personal sector borrow- 
ing requirement rose to 


£l4.25bn in 1981/S2 from 
£11.75bn in 19S0/S1. For the 
first time in several years the 
public sector borrowing require- 
ment for 1981/82 seems likely io 
have been on target at about 
£l0.8bn. The corporate sector 
borrowing requirement, too. was 
much smaller than personal 
borrowing. 


“ The tight fiscal stance 
adopted by the Chancellor in 
in 1981 Budget was a primary 
cause of this surge in personal 
sector borrowing . . . 


** In cutting his own demands 
on the capita] market by rais- 
ing the burrowing needs of those 
sectors who do not have access 
to the markets, the Chancellor 
clearly contributed to the ex- 
pansion of tlie money supply in 
the last 12 months.” 

Mr Osborne concedes that 
some of the rise in bank lend- 
ing lo the personal sector has 
been to unincorporated busi- 
nesses, which rely heavily on 
borrowings io finance expansion. 


YOUR TOTAL 


EXPORT SERVICE 


NOW UNDER ONE ROOF. 


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staff and services have been re- 
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Hie effect is to give com- 


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Financial 55iw&‘5|sg&ff t 




UK NEWS 


LABOUR 


:’ ■' '• 'V ' 


Right is 
strongly 
placed in 
AUEW poll 

Bjr Our Labour Editor 

BALLOTING for three key 
posts in the leadership of the 
Amalgamated Union of En- 
gineering Workers begins to- 
morrow, with Right-wins candi- 
dates in the strongest positions. 

The posts are going to postal 
ballot oE the 900,000 members 
for a second time because the 
first-round winners had no clear 
majority over all other candi- 
dates as the rules require. 

The right-wing candidates 
for the two executive council 
seats. Air Ken Cure. West Mid- 
lands, and Air John Weakley. 
South-West, both incumbents, 
topped their polls and are ex- 
pected to win this time. 

The crucial battle is between 
Mr Ken Brett and Mr Gavin 
Laird for general secretary. 

Mr Brett, a Communist, and 
one of the union's two assistant 
general secretaries, topped the 
poll with 55,143 votes, to 54.708 
for Mr Laird, a right-winger 
and executive council member 
for Scotland. 

It is thought likely that the 
21,805 votes for Air Gerry 
Russell, executive council mem- 
ber for the North-West, who 
drops out, will largely go to Mr 
Laird. 

The left in the union has 
worked hard for Jlr Brett's 
victory, attacking the right-wing 
leadership for lack of militancy. 

For the less critical post of 
national organiser, Mr Bill 
Timms, who had 56.081 votes in 
the first round, js opposed by Mr 
Harrv Cutts, a left-winger, who 
had 25.067. 

• Air Dave Stirzoker. national 
gas officer of the National and 
Local Government Officers’ 
Association, said yesterday that 
the union's members in the 
industry would strike “ if neces- 
sary” lo prevent government 
sale of parts of the gas industry. 


Nine unions agree to BSC cuts Communists Fresh moves o 





BY BRIAN GROOM, LABOUR STAFF 


THE BriLish Steel Corporation 
1 said last night it had reached 
j agreement on flexible manning 
[ and new working practices with 
| nine out of the ten unions at 
its Kavenscraig works in Scot- 
land. 

The corporation still faces a 
potentially explosive situation 
today when it intends to intro- 
duce" the measures without the 
i approval of the biggest union. 
; the Iron and Steel Trades Con- 
federation. 

Some unions had already 
signed deals, and BSC said that 
agreement yesterday afternoon 
with craft and maintenance 
unions meant the plan had won 
i the approval of a majority of 



the workforce. 

The plan, which involves 600 
redundancies, is said by 
management to be vital to the 
future of the loss-making 
Ravenscraig works. Workers 
will receive increases in lump, 
sum bonuses in return for pro- 
ductivity measures. 

• The five-week sit-in at P les- 
see's capacitor plant at Bath- 
gate near Edinburgh, caused by 
the company's decision to close 
the factory, will he discussed 
at the London offices of Acas 
today according tn union rep- 
resentatives, Mark Meredith 
writes. • 

Bathgate workers are expec- 


ted to be joined by delegations 
from Plcssey plants in. England 
to picket the company head- 
quarters in London and lobby 
MP§ about their case against 
the closure. 

Tomorrow will also he an 
important day for the Piessey 

workers when the company's 
court order to seek an end ‘to 
the sit-in comes before an 
Edinburgh coujl 

Ten days ago Plessey's injunc- 
tion was overruled by a judge 
following a submission by the 
advocate representing the 
workers that the sii-in force 
might he immune from prose- 
cution because the workers were 


pursuing a trade union dispute. 

Piessey appealed against this 
decision and the court ordered 
the workers' defence lo produce 
its answers in writing at to- 
morrow's hearing. 

Piessey has already issued 
redundancy notices to workers 
not involved in the strike. It 
wants to shut the factory at the 
end of this month and remove 
equipment. 

About 320 jobs would be lost 
in the closure. The Piessey sit- 
in force of about 200 workers — 
most of them women — has 
argued that there is still a mar- , 
ket for capacitors from the i 
plant I 


Ciyil Service unions split on footing bill 


CIVIL SERVICE union leaders 
are divided on how to appor- 
tion among members of the 
Council of Civil Service Unions 
the cysts of last year’s 2i-week 
strikes over pay. 

The effects of the inter-union 
dispute include a threat to the 
continued financial existence of 
a CCSU constituent union, and 
the fact the union with most 
members on strike, the tax 
staffs’ union, both made the 
greatest pro rata contribution 
to the strikes and is owed the 
most money. 

The issue is known in the 
CCSU as the "equalisation" of 
the strike costs. It has precipi- 
tated acrimonius splits between 
the nine unions. The dispute 
emphasises difficulties facing 
trade unions intending to mount 
concerted strike action under 
an umbrella organisation. It 
has raised traditional inter- 
union rivalries and is a major 
test of CCSU unity. 

The row dates to before last 
year's strikes began. Preparing 
for the dispute the unions 
agreed in principle to appor- 
tion costs between themselves. 
They did not agree then how 
this was to- be done. 

The agreement to divide 
costs allowed the unions lo pull 
out stall in selected key areas, 
such as computer staff control- 
ling the flow of revenue to the 
Exchequer, aod to pay them 
full strike pay to allow them 
to fight on behalf of all the 
530.000 white-collar civil ser- 
vants. 

The unions funded the cam- 
paign by making over sums of 
money, worked out in propor- 
tion to their membership si 2 e, 
and by levies of their own 
members. Levies varied, de- 
pending on the closeness of 


An inter-union dispute is the legacy from last 
year’s unity. Phillip Basset reports 


each union's involvement in the 
strikes. 

The unions did- not. however, 
foresee the length of the cam- 
paign. This drastically reduced 
their ability to meet their 
equalisation costs. Further, had 
some unions realised in lhe 
dispute the wrangle over costs 
that was to follow, they might 
have pulled out rather than 
build up debts they could not 
meet. 

The accompanying table 
shows the costs of the dispute 
to the major unions and how 
they were met. 

From these figures can he 
shown the unions' approximate 
pro rata contribution rates per 
member during the dispute. 
These vary widely. The Inland 
Revenue Staff Federation 
(IRSF) paid more than £24 per 
member: the technical Institu- 
tion of Professional Ci\\l 
Servants lIPCS i £20: the 
executive-grade Society of Civil 
and Public Servants (SCPS) 
more than £19: the clerical 
Civil and Public Services Asso- 
ciation iCPSA) more than £11: 


and the lower-grade Civil 
Service Union (CSU) under £7. 

This shows the IRSF con- 
tributed far more per member 
than any other union. The 
main dispute of rhe equalisa- 
tion issue is between the IRSF 
and the CPSA, which though 
the largest union in the Civil 
Service had a pro rata contri- 
bution rate of less than half 
the IRSF, a quarter of its size. 

Lengthv discussions Jed by 
Air Bill Kendall, CCSU secre- 
tary general, have taken place 
to try to equalise these costs. 
Four main formulas have 
emerged. These are based on: 

• Individual unions* seats on 
the CCSU — under this the CPSA 
would owe just under and the 
CSU just over £500,000; 

• Membership of unions — a 
similar result: 

• Weighting in favour of the 
low-paid — under this the CPSA 
would be owed more than 
£600,000. while the IPCS and 
SCPS between them would have 
to pay out. more than £lm: and: 

• Weighting based on members' 
ability to pay. 


Union & 
members 

CPSA (220,000)“ 
SCPS (105,000) 
IPCS (100,000) 
IRSF (65.000) 

CSU ( 45.000) 
TOTAL (inc- other 
unions & interest) 


Amount paid 
in strike pay 

£ 

2.442,994.03 

1 , 066.82464 

863.649.00 

3.605,161.06 

600,939.80 


Amount 

Amount paid received 
into strike from 
account account 

£ £ 

350.000 370,000 

950.000 ~ 

1,165,000 . — 

— 2,000,000 

— 290,000 


Total 

contribution 

(2+3-4) 

£ 

2,422,994.03 
2.016,824-64 
2,028, 649 JH) 
1,605,161.06 
310,939-80 


8384.073.09 2315.000 2,815.080 8384,07339 


These formulas are causing 
three problems. Firstly, depend- 
ing on which is used, unions 
are either creditors or debtors, 
casting doubt on the formula's 
validity. 

Second, all four show the 
IRSF -to be owed between 
£500,000 and £S00,000, 

Third, each effectively bank- 
rupts the financially squeezed 
CSU. by making the payments 
due from it £200.000 to £300.000, 
which would force the union 
under. 

Most of the unions would like 
the whole issue to be dropped. 
The IRSF, however, is holding 
out for the CPSA to make a 
large contribution to payment 
it sees as due. The IRSF execu- 
tive, though, is prepared to 
waive payment owed by the 
CSU mher than see it plunged 
into bankruptcy. 

Bad blood has arisen between 
the CPSA and the IRSF. The 
CPSA refuses to make a pay- 
ment which would deprive it 
of the ability to mount indus- 
trial action. . Some CPSA 
officials talk of the IRSF trying 
to make a profit from the dis- 
pute, or even trying tn fund its 
£2m new London headquarters. 

The TRSF feels a major 
union like the CPSA should 
stop trying to throw its weight 
about and. should meet its com- 
mitments. 

Talks are taking place to 
resolve the issue. Few are hope- 
ful of early success. A com- 
promise and something positive 
to emerge from the dispute, 
could be the setting up of a 
central CCSU fund. Into this 
unions owing money, such as 
the CPSA, could over a period, 
contribute while creditors, such 
as the IRSF, would not. 


urge union 
rejection of 
Tebbit Bill 

By John Uoyd. Labour editor 

THE COMMUNIST Party is 
to use the considerable 

strength it commands- in in- 
dustry to swing unions round 
to fundamental rejection of 
the' forthcoming employment 
legislation, including a re- 
fusal to appear in court or 
pay damages awarded against 
them. 

Some of the tactics the 
party will argue for are 
already TUC policy — such as 
forbidding affiliated unions to 
use state funds for ballots, 
not co-operating with indus- 
trial tribunals on cases aris- 
ing from the legislation, and 
supporting unions under 
legal attack by employers. 

Many will however, go 
beyond these proposals, which 
will be put to a conference 
of union executives on April 
5. The party intends to urge 
withdrawal from the National 
Economic Development Coun- 
cil — * already rejected by the 
TUC general council — 
refuse to appear in court 
once the legislation is passed 
and refusal to pay any com- 
pensation or damages 
awarded against them. 

Deliberate incitement to 
break the law once the 
Employment Bill is passed 
would shatter the consensus . 
on action constructed by the 
TUC. Tbe TUC wants to stay 
within the broad definition of 
of careful militancy, in keep- 
ing with the muted level of 
union activism over the past 
two years. 

The Co mmunis t Party’s 
tactics are spelt out in a pam- 
plet — “Tebbit’s Bill — KUl 
it ” — published today and 
written by its industrial - 
organiser, Mr Mick Costello. 
In his foreword, Mr Costello 
says : “ The TUC should 

make non-co-operation with 
the Bill mandatory for all 
unions. -and massive Industrial 
action be made the immediate 
response should anyone be 
gaoled under its provisions.” i 

Among tactics proposed are: 

• Industrial disputes should 
continue to be. conducted in - 
the most effective way, with 
no regard to legislation. 

• Union funds “should not 
be wasted on futile and expen- 
sive legal fees • 

"Tebbit’s Bill— Rill it": by 
Mick Costello; published by 
the Communist Party, 16, St. 
John Street, London, EC1M 
4AL; 40p. - . * -J 


Militant 


BY PETER RIDDELL/ POLITICAL EDITOR 


AN ‘ATTEMPT will be made 
today to re-open the question 
of whether supporters of the 
far-left Militant Tendency 
should be endorsed as Parlia- 
mentary candidates :for the 
Labour Party. . 

The patty's organisation sub- 
committee will be considering 
the position of Mr Pat Wall, a 
prominent Militant supporter 
who has been chosen in Brad- 
ford North in preference to. 
Mr Ben Ford, the sitting. TXF. 

Mr Wall’s endorsement was 
blocked at last month’s national 
executive meeting because «f 
alleged technical irregularities 
in the selection procedure. Mr 
Ford has threatened to stand - 
ay an independent candidate^ 

The controversy has been 
increased by the disclosure <£.. 
Mr Wall's view that 'the 
monarchy and the House- of 
Lords should be abolished and 
that under . a Labour Marxist 
government, senior judges, 
generals, civil servants- , and 
police : chiefs should bfc ydis-- 
missed. . 

■The row highlights ... the 
fragile nature . of the public 
truce between the various , fac- 
tions in. the Labour .Party and 
comes at a . time when the party's 
standing as shown in both focal 


election results and opinion 
polls ha*. been improving. 

• Mr. Hoy Haftmley and Mr 
Peter Shore,, joint leaders o£ 
the Woderatc Sol n 
Cawpaf&i.' Strongly opposed Mr 
WalFff: endorsement as candi- 
date "yestatidy Mr Shore said 
ronJ®0 :xa'dio that Mr Wall's 
views Mid nothing i<» do with 
'democratic socialism. 

, Today's . . . organisation sub- 

comndttee : is most likely _ to 
order • another rc-seJection 
conference. But it is possible 
Mr "Watt win again be chosen. 

V, , Sub-commi t tee member. Mr 
John Golding, a prominent MP 
on " 7 the right/centre of the 
'.party " will try to re-open the 
whole question of endorsing 
Militant candidates. Solidarity 
; supporters, have argued that 
endorsements should be sus- 
pended until the inquiry into 
Militant reports in June. Thin 
line will be resisted by many on 
the left who argue lhat lota! 
parties should be able to select 
whomsoever they want. 

Mr. Ford said yesterday: “If 
a particularly hard left candi- 
date were adopted who does nnt 
espouse parliamentary demo- 
cracy then I would haw no 
alternative but to stand against 
him. ” 


Think-tank identifies list of 
SOP policy priorities 


BY OUR P ARAJAMEhiTAR Y EDITOR 


THE POLICY of the Social 
Democratic Party should give 
first priority to increasing the 
investment in public and private 
sectors, according - to the first 
pamphlet, Investing in Innova- 
tion, produced by the Tawney 
Society, an .. unofficial think- 
tank’ formed by some members 
of tbe party. 

In it Professor Peter Hall, of 
Reading University, urges em- 
phasis he placed on new. science- 
based . industries: He suggests 
there should be deferred tax 


cuts, whereby taxpayers would 
be allowed to invest- in a variety 
of productive enterprises. 

Government policy should 
expand the national science 
budget for industrial applica- 
tions , through a body modelled 
on Japan's Ministry of Inter- 
national Trade and Industry. 
The professor says this may 
involve a reversal of regional 
planning policies. 

Investing 1 jin /nit oration; 
Tourney Society. IS, Victoria 
Park Square, London E2; £1.50. 


Print pay talks break down 


NEGOTIATIONS FOR a new 
national agreement between the • 
Newspaper Society and print 
unions the NGA, Natsopa, Slade 
and Sogst have broken down. 

The NS .said yesterday it had 
offered an increase of 8 per 


cent, amounting to £6.50 a week 
on basic rates far craftsmen, 
but the unions bad claimed up 
to £11 a week, plus a fifth 
week's holiday, a shorter work- 
ing week and increased rates 
for working on bank holidays. 



al bahrain arab african bank (e.c.) IkJWilM 

ALBAAB 

BAUNCE SHEET 31 DECEMBER 1981 



NOTE 


ASSETS 

CASH AND DUE FROM BANKS 
INTERBANK PLACEMENTS 
CERTIFICATES OF DEPOSIT . 

BOND PORTFOLIO 

COMMERCIAL LOANS AND ADVANCES ‘ 
OTHER DEBIT ACCOUNTS 
FIXED ASSETS - 


CLIENTS-’ LIABILITIES — LETTERS OF CREDIT, 
GUARANTEES AND ACCEPTANCES 7 


1981 

UJL$ 

89,492,404 
310,915,320 
15,359,093 
J 6,648,711 
667,683,853 
. 32,662,183 
2,744-, 699 


1980 \ 
U.S.$ 

.95,487,442 
241,818,993 
‘15,366,973 
-10,256,979 
350^657,106 
19,288,814 
. 388,361 


' 1;135,506,263 ‘ 733,264,668 

nr, . . 

•7 . 101,707.856 62,319,602 

' V I, 237, 214,1 19 795,584^70 


LIABILITIES AND SHAREHOLDERS’ EQUITY 

SHARE CAPITAL . / 3 

STATUTORY RESERVE 4 . i' 

GENERAL RESERVE . ; . 

RETAINED EARNINGS ... V- 

SHAREHOLDERS SUBORDINATED LOAN .- 6 
DEMAND DEPOSITS 
LONGTERM BANK DEPOSITS 
FIXED DEPOSITS 
DUE TO BANKS 
INTERBANK DEPOSITS 

OTHER CREDIT ACCOUNTS AND PROVISIONS 


50,000,000 
' 3,817^83 
/ - 7,500,000 
; - .698,280 

17,771,465 

31,034,735 

153,906,214: 

1,320,856 

826,5171626 

42,939,304 


30,000,000 

839,249 

3/500,000 

643,240 

.5,000,000 

11,658,073 

13,728,672 

151,141,813 

11,371,009 

483^61,859 

21,420,753 


BANKS LIABILITY — FOR LETTERS OF CREDIT, 
GUARANTEES AND ACCEPTANCES ' '■ - 7 


: 1 t 135£p6£63 733,264,668 
401.707,856- €2,319,602 

1,237,214,119 755384^270 


Shareholders: 

Ministry of Finance, Kuwait 
Central Bank, Egypt 
Ministry of Finance, Qatar 
Central Bank, Algeria. 
Ministry of Finance, Jordan 


Kafidam“Bap£ Iraq 
Bank AI Jaara, Saudi Arabia - 
-Arab African International Bank, Cairo 
Arab Multi-National Finance Co. S A, 

. ; ’ V . Lnxeinbourg ■ 


P O Box 20488, Manama, BahrainTelex: 9380 and 9381' AdiBAAB BN Telephone: 230491 


Financial Times Monday March 8 1982 


Hear seat Rear dgar 

centre armrest lighter 


Recfirting front seats Minature torch Remote .control Illuminated Two speed wipers with 

with adjustable migration key drivers mirror glove box variable interval intermittent 

head restraints \ \ | wipe and eledric screen wash 


Heated \ Moulded \ ' Drivers seat \ Jront centre \Sunvisor vanity \ Laminated MW/LW /Centre console 

J J \ J arlinrfaKIa \ armroef \ nrnr/W \ WinHwTPPn Olich hntfnn / urifh illuminated 


rear window \ door trims with\ adjustable \ armrest 

l \ fabric inserts Mumbar support \ with glove box 


mirror \ windscreen push button / withillununated 
■\ \ 1 radio / ashtray 


f Cigar 
lighter 














A great deal of comfort 


Reversing and Servo assisted 
’ fog Edits dual Ene brakes 

• / \ 


Aluminiumised 


silencer 


resists corrosion 


Bonded rubber suspenaoi 
mountings insulate 
passenger compartment 
from road noise 


Self-adjusting Electronic breakerless ignition Power assisted steering. Halogen 
dutch saves maintains accurate spark Standard on 23 headlights 

service costs timing. Improves effidency optional 2.0 litre 
\ and reduces maintenance / 


— * 



A great deal of engineering. 



Ford Granada L. From £7,211. 


And a great deal besides 




Above is the two Eire Granada L 

And at £7,211* where else will 
you find such a wealth of equipment 
and such emphasis on engineering 
for anywhere near such a reasonable 


pnce 


Especially when you consider 


that Britain’s most popular large 
car is enjoying a most unusual 
situation. 

Our 1200 dealers in the UK 
have a wide variety of stock and 
that can only mean one thing. 

You can be sure of a great deal. 


Visit your Ford dealer sooa 
He’ll also tell you about Extra Cover? 
Ford’s optional 2nd and 3rd year 
warranty plan. 

♦Ford Granada L From £7,231, maximum price 
at time of going to press. 

Seat belts, car tax and VAT included. Delivery and 
number plates at extra cost 


Rsdgivesyouznoie. 





\j:. -i'X 














BOND DRAWINGS 


KINGDOM OF NORWAY - US.Sa5.000.000 
SWV no YEAR EXTERNAL LOAN OF 19W 

HAMBKOS RANK LIMITED herebv gots notice ihac, in accordance »!lh ihf t«rms and conditions or Ihf ahm-e loan, the 
redempuon due Uth Slav, I9B2, haj been effected bv the drains of ihe undcr-roenuoned bonds amouminj: 10 US.S2.A70.000 
i nominal i on the 22nd February, I9S2, lor redemption u par. Thu cuivunding: balance after the 13th May, 1982 redemption is 
L'S.5?.3'5.000 inomrn.il). 

The drawn bonds may be presented to Hambros Bank Limited. 41, BiUiop*goic. London, EC2P 2AA, or to the ocher Paving Agents 
named on the bond 1 .. . . ... 

Por pajmcnL in London, bonds «il| be received on anv busines day and imul be left ibrec dear dajs Tor commotion. 

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iih March 1952 


KINGDOM OF DENM \RK - L'S.'iSMVO.fTO 

J'.-Oi 20 'I’EAR EXTERNAL LOAN OF 19M . ... , . 

HAMBROS BANK LIMITED lierebv givev notice that, ic au-’sdance v.r.h ihe term* and conditions ef the artr.’e loan, uie 
TedemotK'i* for 3th April. (932 (ij< been e(fecrp) hv r urchj-.- oJ L5.59fW.W)momiiu)MndlhTunder-nirwionrd bend; amour.nw 
jo L'o^SJl.Oiyi (nominal i "to? drawn on 22nd Fctrjjrj, i'3s2. Icrrcdempiion jl par. The ouma n e m s balance after the eUt April, 

’o;2, rtdwiriioni-. US.S*.4n.DWinominal». . .. . ..... . 

The erawnbondtmay be preiraied to Hambies Bank Linuicd.41, Bishop-gaie, London. EG-P -AA.orlCtheoJier Fav.ng.^gatw 

F crraimen: in London, bands will be r«oed cn anv ho- mr-» dav aa! m-jit be left three clear da;“ for ekamxation. 

B*3NDj or l 5.5) ’HI) • 


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9<OS 9816 9827 98?2 964.1 

okas m* in l«*u ooin men 

jori 1016.1 10219 0341 10.148 

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11933 U9L2 1202b 2027 12028 


KINGDOM OF NORWAY 

U-5-X3Q.003.QQ0 5V% 20 YEAR 
EXTERNAL LOAM OF 1*S 

BonUhuMm of th* absv* lean are 

aavised tha: >n« redemotlon duo Is: Anri). 
1902. Ic. U 5.52.4 13.000 nODIIitll has 
been -IhKiQd n» rurclMM. 

Th» outstanding balance 4Rar till a 

redcinfft'O 1 * >r U .S. *3. 061000 - 
” HAMEROS BANK LIMITED 

S;h March, 1382 





2*1!:, 

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2*4*3 2*414 




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21 X20 ,2021 213*4 2IM* 2l*7< 

21X29 2l<t?2 2 1 •* ! * 2('.’ , < 2(S4| 


The follo-'-inp bonds f;em rresion* 
draining: ha- e nc: ?st teen rmented 

for pa.uncn'.'- - 

Bonds Dra»n For Paymcn: Oa: 

$th April I*r»B 
2/14 11225 


Bonds DiJ" n For Pa; mem Oc: 

Sth April 19M 

IK* 2141 2/SS 1/476 16£li5 
2493d 


HAMBROS B \NK LIMITED 
Slh Mutch 1902 


LECTURES 


BUSINESSMAN’S DIARY 

UK TRADE FAIRS AND EXHIBITIONS 


Date 

Current 


Mar 9-13 .. 

Mar fl -20 
Mar 9-Apr 3 
Mar 14-17 ... 


Mar 14-1S .... 
Mar 14-16 .... 
Mar 22-C6 .... 
Mar 25-26 .... 

Mar 25- Apr 2 


Mar 2S-Apr 1 

Mar 29- Apr 1 
Mar 29-Apr 1 
Mar 31- Apr 2 
Apr 5-7 

Apr 7-14 


Title 

Footwear and accessories show tOl-733 2071) (until 

March 9) 

The Business Enterprise Show (01*636 3716) 

Chelsea Antiques Fair (0727 56069) 

Daily Mail Ideal Home Exhibition (01-322 9341) ... 
International Glass and Glass Technology 
Exhibition — GLAS5EX (0378 77866) ............ 

AutoQuip Exhibition (01-235 7000) 

The London Shoe Show (01-739 2071) 

London Fashion Exhibition (01-3S5 1300) ..... 

Wine Fair (0734 4S1713) 

Metalworking ’S3 Exhibition (0737 6S611) and 
International Metalcuttlng Machine Tools 

Exhibition (01-402 6671) 

British Exhibition of Fine Jewellery and Sterling 

Silver (01-493 762S) 

International Diecasting Exhibition (0727 63213) 

Audio Visual Exhibition (01-688 77$S) 

Fashion Fabrex Exhibition (01-385 1200) 

Concrete Society Exhibition and Conference (01-730 

S252I - 

Birmingham Motor Show (0602 51302) 


OVERSEAS TRADE FAIRS AND EXHIBITIONS 


Current 

Current 

Current 

Mar 11-21 

Mar 14-20 

Mar 16-19 

Mar 16-21 

Mar 1S-23 

Mar 1S-26 

Mar 21-25 

Mar 23 

Mar 23-27 


Mar 25-23 


Apr 6-9 


Winter Sports Equipment Exhibition (01-439 3964) 

(until March 9) 

International Fashion Trade Fair — 1GEDO 

(01-409 09561 (until March 10) 

International Agricultural Exhibition (01-439 3964) 

(until March 14 j 

Household Appliance Trade Fair (01-4S6 86S6) ... 

International Spring Fair 101-493 3111) 

Shipcarc Exhibition (0S533 6155) 

Brighter Homes and Do-It-Yourself Exhibition 

l Dublin 694022) 

Woodworking Machinery Exhibition (01-439 3964) 

Petroleum Show (01-4S6 1961) 

Middle East Business Equipment Show (01-486 

1951) 

International Computer Conference and Exhibition 

(01-994 6477) 

International Energy and Engineering Trade Fair 

(01-236 0911) 

The Fourth International Travel Fair — TRAVEL S3 

(021-705 6707) 

First International Energy Technology Exhibition 
(01-S39 5041) 


Grenoble 

Dusseldorf 

Paris 
Sao Paulo 
Leipzig 

Hamburg 

Dublin 

Paris 

Peking’ 

Bahrain 

Frankfurt 

Stuttgart 

Singapore 


BUSINESS AND MANAGEMENT CONFERENCES 


Mar S-9 


:>** 228*4 Hfi/2 25853 

22t,-‘ 22t>~7 22h« 22885 22^0 

:2tjs :;t?8 22 -?.? 22 -*'* * — * w “ — ■ 

22-JI* 22‘85 :: _ 88 22 ’S' 22'ff> 

22— rt 22“* ' 22*-*) 22 r ‘*2 

22->w ;;'nx 228?n 22x*l Z2r*5 in ., 

: 2 vn> rriik/ : 2 giu :n?4 : 2 »r? Mar 10-13 

2’M* 2:u’ 22'M‘i 2*1*4 221*5 

22157 ::»m 2:n»2 2218 R 229 ^ ■«»__ n 

2 ; 1**3 2 *r»U ^3005 2.1008 2 < 00 * Mar 11-14 

Mar 15-1S 
Mar 17 .... 
Mar 17-iS 


Mar IS ... 

Mar 1S-19 

Mar 18 ... 

Mar 20 ... 

Mar 22 ... 

Mar 23 ... 

Mar 24 ... 

Mar 25-27 

Mar 25-26 

Mar 25-26 


Mar 26 

Mar 29-Apr 2 

Apr 4-7 

Apr 6-7 

Apr 7 


AMR/Euromoney: Aerospace International Ship- 
ping Financing Energy Techniques (01-262 

2732) •. 

Esomar: Profitable co-operation of manufacturers 

and retailers (020 444995) — 

Summit Conference and Exhibit Group: 5th 
Symposium on Crime in Business (04912 3675) 
EPM: The Elements of Salary Administration (01- 

946 9100) - 

Institute of Credit Management: National Con- 
ference (0990 23711) ~ 

FT Conference: European Pulp and Paper in the 

SOs (01-621 1355) 

Institute of Marketing: Action for Recovery Con- 
ference (01-6S0 7525) - 

Londnn Export Conferences: Nigeria— Future 

Programmes (0S22 3577) 

Institute of Marketing: National Conference 

(06285 24922) 

University of Reading: Strategic Factors in the 
Growth of International Business (0734 85123) 
Oyez-IBC: European Symposium on the Candu 

Reactor (01-242 2481) 

IPS: Currency Differentials (0990 23711) 

CBI: Business Realities— Are We Understood? 

(01-379 74001 

The Institute of Administrative Management; 

Administrators of the Future (01-65S 0171) ... 
DRI Europe: After the Recovery: Planning for 

Renewed Growth 1 01-222 9571 » 

The American Chamher of Commerce (United 
Kingdom): Operating in British Industry—- An 
In-Depth Briefing for Senior American Execu- 
tives 1 01-370 3176) 

Dun and Brads true t: Understanding Credit and 

Collections 1 01-247 4377) 

REG Conferences: Reinsurance Practice (01-236 

2175) 

University of Leeds: Freight Transport Policy— 
The Role of New Technology <0532 35036) ... 
Lloyd s of London Press: Ship Finance (01-730 2182) 
The Hen lev School of Forecasting: Corporate Plans 
after the Budget (01-353 9961) 


London Press Centra 
Munich 

Churchill Hotel, W1 
Embassy Hotel, W2 
Hilton Hotel, W1 
Finlandia Hall, He lsinki 
Hilton Hotel, W1 
Churchill Hotel, W1 
Hilton Hotel, W1 
Reading 

Portman Hotel. W1 
Midland Hotel, Manchester 

Centre Point, WC1 

Bournemouth 

Waldorf Hotel, WC1 


Dorchester Hotel, W1 

Cafe Royal, W1 

Kyi. Westminster Hotel, SW1 

Harrogate 

Singapore 

London Press Centre, EC4. 


Anyone wishing to attend nnir of the above events is oduisert to telephone the organisers to 
ensure that there has been no change in the details published. 


Financial Times Conferences 


THE SEVENTH INDUSTRIAL RELATIONS CONFERENCE 
Lnndon. 29 and 30 April 19S2 

The Secretary of Siaic for Employment The Rl Kon Norman Tehbit. MP will give the keynote 
aridre-x? al ihis timely and topical conference. Other speakers will include The Rt Hon Mrs Shirley 
Williams. MP speaking on behalf of the Social Democratic Party; Air Walter Goldsmith, Director 
General of ihe Institute of Directors: Dr •). s. McFarlane. Director General of the Engineering 
Employers' Federation: and Mr K. Graham. QBE Assistant General Secretary of the Trades Union 
Congress. 

THE FT- CITY COURSE 
London. 22 April to 24 .Tune 19S2 

The FT-Ciiy Course is designed for employees in companies with interests in the City to provide 
brnarirr understanding of all super!? of the operations of the City of London and the farters that have 
made it a pre-eminent financial and trading centre. The topics to be considered by 24 distinguished 
icctiircr? will include an examination nf the role of the clearing banks, the merchant banks and the 
operation of the iJi'u/oimt market. Attention will he focused on the development of the building 
incietie. : . the organization of metal and other commodity’ markets and the structure of the UK 
insurance and shipping markets. 

A U cnau i ries should be ndcl reused to: 


Financial Times Monday March S 1982 

UK CONTRACTS 


Exhibition Centre, Harrogate 
NEC. Birmingham 
Old Town Hall 
Earls Court 

NEC, Birmingham 
Olympia 

Kensington Esbn Centre, WB 
Olympia 

New Horticultural HalL 

Westminster 


NEC, Birmingham 

Goldsmith's Hall, London 
NEC, Birmingham 
Wembley Coni. Centre 
Olympia 

Met. Exbn. Hall. Brighton 
Single y Hall 


£8m steelwork 
at Heathrow 

STEELWORK for Heathrow’s 
major now terminal 4, designed 
to boost passenger handling 
capacity by 8m a year, is to be 
fabricated and erected under an 
£8m contract awarded to 

ROBERT WATSON AND COM- 
PANY (CONSTRUCTIONAL 
ENGINEERS), Bolton. The com- 
pany will supply steelwork for a 
terminal building 600 metres 
long and up to 200 metres wide. 
The contract includes 75,000 sq 
metres of metal decking. A 
feature of the development will 
be the incorporation of 
cantilever tubular trusses with 
a 4L5 metres span. The total 
project Is expected by the 
British Airports Authority to 
cost £220m at completion. It 
includes new roads, taxiing 
areas, aircraft stands and car 
parks in addition to the terminal 
buiidity? itself. When terminal 4 
opens in 198b it will increase the 
airport's capacity from 30m to 
3Sm passe agers a year. The 
overall project is being 
managed by Taylor Woodrow 
Construction. 

* 

A £3m development has started 
at Heathrow Airport's Terminal 
2, which will lead to Improve- 
ments to the terminal's baggage 
reclaim area, enabling 
passengers to complete arrivals 
formalities more conveniently 
and in greater comfort. The 
work will be carried out in 
phases, to minimise disruption. 
Main contract has been awarded 
to FARROW CONSTRUCTION. 


CONTRACTS VALUED at over 
£3.7m have been awarded to 
WILLIAM TAWSE, part of 
Aberdeen Construction Group. 
The first, valued at £l.Sm. bas 
been awarded by Strathclyde 
Regional Council for the recon- 
struction of a 7.5 km section of 
the Lochgilphead - Campbelitown 
road, and will include three 
minor bridges and 38 culverts. 
The second contract worth £1.3m 
has been awarded by Lothian 
Regional Council for the con- 
struction of the Levenhall pump- 
ing station, part of the Tranent 
and. Mussel burgh sewage disposal 
scheme. Tawse has been awarded 
a £650,000 contract by Grampian 
Regional Council for the con- 
struction of a section of duel 
carriageway at Tyrebagger Hill, 
north of Aberdeen city boundary. 
* 

REED AND MALL IK (MID- 
LANDS), civil engineering divi- 
sion of the Rush and Tompkins 
Group, has started work on a 
£2J?m by-pass for Heckington on 
the King's Lynn/Sleaford/Newark 
stretch of the A17 trunk road 
in Lincolnshire. A 72-week work 
schedule has been agreed for the 
construction of the 4.5 km by-pass 
for the “ bottleneck ” Heckington 
village, which retains an unusual 
eight-sail windmill and a .fine 
14th -century cruciform church. 
■* 

BEECHWOOD CONSTRUCTION 
(HOLDINGS) has been awarded 
civil engineering contracts to the 
value of £2.5m. Work has 
started on a £1.25m contract at 
the Fforestfach Industrial Estate, 
Swansea, for the Welsh Develop- 
ment Agency. This includes 


installation of large and small 
diameter sewers, earth-moving, 
landscaping and road construc- 
tion on a 26-hectare site. Water 
main laying work for the Anglian, 
Severn Trent and Welsh water 
Authorities has also been 
secured, together with a con- 
tract in Scotland for the High- 
land Regional Council, totalling 
£Im- A £330.000 contract, cover- 
ing the construction of an 
abattoir at Cardigan, has also 
been obtained. 

SPARROWS CONTRACT SER- 
VICES, Bristol, has been 
awarded a contract worth about 
£300,000 to lower, dismantle, 
re-asspmble and raise into posi- 
tion two travelling gantries and 
associated shuttering being used 
to construct viaduct box girder 
spans of the approach roads of 
the Orwell Bridge, Ipswich. 

Working for .the main civil 
engineering contractors, Stevin 
Construction BV (a member of 
the Royal Volker Stevin group). 
Sparrows' engineers are using a 
strand jacking system with four 
jacks. 

Refurbishing 
Lutyens house 

MWT ARCHITECTS, Southamp- 
ton, has produced a £6m refur- 
bishment scheme to Daneshill 
House, a country mansion near 
Basingstoke, originally designed 
by Sir Edwin Lutyens. The 
client is the Royal London 
Mutual Insurance Society, and 
main contractor is BRAZIER 
AND SON. The Lutyens house 
will be converted into office 
accommodation ( 10,000 sq ft) 
and there will be two new low- 
rise office buildings within the 
nine acre site, adding a further 
40.000 sq ft Work should be 
completed by early 19S3. 

* 

CLUGSTON CONSTRUCTION, 
Scunthorpe has been awarded 
contracts totalling almost £10m, 
This includes: surface amenity 
buildings and ancillary works at 
Barnsley Main Colliery valued at 
£3.5m; £1.25m boiler and power 
house project at the British Sugar 
Corporation factory at Bardney; 
an £800.000 section of the River 
Idle improvement scheme at 
Bawtry for the Severn Trent 
Water Authority; and work Will 
commence . shortly on a gas 
handling project at Hornsea for 
the British Gas Corporation, con- 
tract value £590,000. 

* 

The southern region office of 
WILLIAM MOSS (CONSTRUC- 
TION), has secured two con- 
tracts totalling some £6m. Both 
are for developments by London 
and Provincial Shop Centres 
(Holdings) in Slough. The first 
comprises an office block and car 
park in Windsor Road, Slough 
where work has started for com- 
pletion in 75 weeks and where 
the contract is valued at £3.6m; 
while die second is for smaller 
office blocks at the Triangle site 
in the High Street where the con- 
tract is worth £2.4m. _ 

■* 

A £3m contract to design and 
build the cooling system of an 
■electricity converter station — 
part of a cross-Channel power 
link-— has been won by TAYLOR 
WOODROW CONSTRUCTION. 


Parliamentary diary 


The Financial Times Limited 
Conference Organisation 
Minster House. Arthur Street 
London EC4R DAX 


Tel: 01-621 1355 
Telex: 27347 FTCONF G 
Cables: FINCONF LONDON 


TODAY 

Commons: consideration of a 
timetable motion on the Oil 
and Gas (Enterprise) Bill 
Canada Bill, third reading. 

Lords: Travel . Concessions 
(London) Bill, second reading. 
Administration of Justice Bill, 
second reading. Deer (Amend- 
ment) (Scotland) Bill. 

Select Committees: Home 
Affairs: sub-committee on race 
relations and immigration. 
Subject— Immigration from the 
Indian sub-continent. Witnes- 
ses: United Kingdom Immi- 
grants Advisory Service (room 
15. 10.45 am). 

Education, Science and the 
Arts: Subject — public and 
private funding of the arts. 

Energy: Subject — combined ■ 
heat and power. Witnesses:' 
Central Electricity Generating 
Board. Electricity Council; 
Northern Engineering Indus- 
tries (room S, 4.30 pm). - 
TOMORROW 

Commons: Budget statement' 
Opposed private business after 
7 pm. 

Lords: Civic Government 
(Scotland) Bill, report Debate 
on plans for the economic and 
social development of Pitcairn 
Islands. 

WEDNESDAY 

Commons: continuation of 
Budget debate. 

Lords: debate on the need 
for improved medical care in 
the National Health Service 
.Select Committees: Defence: 
Subject — Ministry of Defence 
organisation and procurement. . 


Witness: Mr Kenneth Warren 
MP, Ministry of Defence (room 
15, 10.30 am). 

Industry and Trade: Subject 
— the Post Office. Witnesses: 
Mr Kenneth Baker MP, 
Minister of State, and officials 
from the Department of In- 
dustry (room 16, 10.30 am). 

Scottish Affairs: Subject — 
rural road passenger transport 
and ferries. . . 

Home Affairs: Subject — 
police complaints procedure. 
'Witness:. Lord Belstead, Parlia- 
mentary Under-Secretary of 
Slate, Home Office (room 8, 
13 am). 

• Transport: Subject — trans- 
portation in London. Witnesses: 
Rt. Hon. David Howell MP, 
Secretary of State, and officials 
(room 17, 4.15 pm). 

European Legislation. Sub- 
ject — Common Agricultural 
Policy price fixing 1982-83. 

Welsh Affairs: Subject — 
water in Wales. 

Committee on Private Bill. 
Unopposed Bills: West York- 
shire (Parking and Transport) 
Bill (roo m 9, 4.00 pm). 

THURSDAY 

Commons: Budget debate. 

Lords: Taking of Hostages 
bill, committee. Local Govern- 
ment (Miscellaneous' Pro- 
visions) Bill, committee. Repre- 
sentation of the People (Vari- 
ation of Limits of Candidates’ 
Election Expenses) Order 1982. 

FRIDAY 

Commons: Private Members' 
Motions. 


GRESHAM LtCTURCS l.i McHiejI SCiCUCC. 
The Ph-iiOl'M- al Rese.rc.cn fcv Pro- 

ftmer □. £««?. 0 "?-fiou» impure’, a; 
The Ci!* Unmcrvtv Moritiimptcn 
Sauare. EC*. « 8 W pm. 

March 0:h. 16th. Z3ro. Admilion 

Ire-c. 


GRtSHAM LECTURES lit AiSrencmv 

Th? Piaarei of the umnne *ia lh?*r 
Life i>» Prafi-ssw 8*. 

5 , ';-iiajr ir>::ijrs5 a: Thi* C :» U--- 

v<-ri.:, Mor:h*mDtQfi S’Suj,.-. L;"TC"* 

EC*. .*1 S.Ofl 3i". Mareti Oil*. 16:“ 
CSriJ, Aon-4>IO<l l:f'. 




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■•'•Use 


BUILDING AND CIVIL ENGINEERING 






Concrete base for Tarmac in U.S. iwaterway | HGS pulls out 


.CHARLIE FUNK, one-time Ten- 
nessee. lawyer and restaurateur, 
lores a challenge and reckons 
he has found one with Tarmac, 
the UK-based construed on-to- 
building products group which 
is stepping up its activities in 
the United States. 

Funk found himself on the 
payroll ' when Tarmac scooped 
up its first U.S. acquisition in 
1980 and he believes the group's 
plans wQl provide plenty of 
scope for- bis own ambitions. 

Though he may not, at first 
sight, appear to have much in 
common with Ernie Hughes, the 
soft-spoken Black Country man 
sent out to head up Tarmac's 
American operations, they share 
a knowledge and experience of 
a part of the construction mar- 
ket which they both love. Ready 
mix concrete and concrete 
blocks may not set the world on 
fire, but they can claim to hold 
half of it up and, in a. market 
like the United States, they rep- 
resent very big business.- 

Neither is there any doubting 
Funk’s admiration for the 
British approach to the industry. 
“The Tarmac . guys are good. 
They know their business as 
well as anyone over here but 
they just go about it in a more 
gentlemanly way. * 

“The group intends to grow 
in the U.S. and I intend to grow 
with them. Since they arrived 
and took us over, they have gone 
on to buy out companies which - 
I wanted to acquire for a long 
time. 

Tarmac’s arrival in the U.S. 
follows names like RMC, Amey 
and Tticon and has been a 
characteristically low-profile 
affair (a bad experience in West 
Germany taught it the benefits 
of locally experienced manage- 
ment). While it has been 
co-ordinated under the Tarmac 
Roadstone U.S A. banner, the 
flag-waving has been kept to a 
minimum. According to Ernie 
Hughes, there is no point is 
disrupting a good customer- 
supplier relationship. He also 
admits that, in some quarters 
at least, foreign ownership is a 
touchy area. 

Door to TJiS. 

The door to the U.S. market 
opened with the acquisition in 
Florida of Amcpn, a ready mix 
concrete producer, and 
Concrete Products, a block- 
making operation.. Both were 
100 per cent-owned by Paid 
Schwartz, a former American 
airforce colonel who, with 
son-in-law Charlie Funk has 
subsequently remained on the 
management team.- - 

Last year, Tarmac bought 
Concrete Services, a ready mix 
concrete - and concrete 1 block 
producer located in Pinellas 


County, Florida. At the same 
time, another ready mi*- plant 
was picked up from Industrial 
Concrete Services. 

The net effect of the 
purchases so far has been to 
provide Tarmac with a 
significant share of the ready 
mix and concrete block markets 
in the Tampa and St Petersburg 
areas on the west Florida coast, 
a region which appears set for 
a period of explosive growth 
once the present recession is 
over. 

The area has a population 
approaching 2m and now rivals 
Miami as the major urban area 
in a state now attracting 250,000 
new residents annually. 

Tarmac’s moves have, in 
under two years, brought it nine 
batching plants (a tenth will 
open in April) and a 22 per cent 
bhare in the local ready-mix 
market, as well as three block- 
making plants which now 
account for about 16 per cent 
of all local block sales. To date. 
Tarmac's acquisitions represent 
an investment of about 312 m. 

Takeover trail 

The takeover trail is still hot, 
however, and one of the group's 
priorities is to obtain its own 
source of primary materials, the 
aggregates which go to make 
up its products. Good rock is 
particularly bard to find in 
Florida, with most quarries in 
the hands of companies which 
also compete in the ready-mix 
and block markets. Tarmac has 
taken a close look at alternative 
ways of acquiring its own sup- 
plies and the purchase of a 
major, independent quarry or 
a greenfield site operations 
■looks likely. 

The recession has done little 
to advance Tarmac’s short-term . 
prospects in the area hut the 
company may well take advan- 
tage of the plight of some com- 
petitors on the products side 
and add a few more scalps^ to 
its belt. 

The major problem area has 
been the housing market, which 
has traditionally accounted for 
the bulk of concrete block sales. 
Since the second half of last 
year, sales have slumped and 
only the commercial market has 
saved producers from a far 
worse position. 

Tarmac * has problems of 
another kind in Texas. The 
purchase of Hoveringham has 
left it with a sand and gravel 
produce.' in Colorado County 
and a ready-mix company in 
Houston, both of which are re- 
porting losses. The group had 
itself looked at them as poten- 
tial takeover targets but walked 
away before Hoveringham 
stepped in. 

But Ernie Hughes points out 


that Hoveringham had subse- 
quently invested in the com- 
panies before they joined the 
Tarmac camp and he is con- 
fident that the problems will 
soon be over. “We have sub- 
stantially come to grips with 
the difficulties we inherited and 
losses will be ended by the end 
of 1982." 

Texas may yet prove as 
Important as Florida for Tarmac 
and Georgia could also figure 
In future investment plans. 
According to Ernie Hughes: 
“ Without exception we are 
enthusiastic about the oppor- 
tunities. We have brought to 
the local market a commercial 
forward thinking which was 


largely absent as well as an 
ability to Identify potential 
areas for sales growth. 

“The market is having a 
tough time but in the UK we 
have lived through inflation, 
high money costs and low 
demand and have learned how 
to' gear up for better times. We 
are not going to confine our- 
selves to Florida and Texas but, 
equally, we are not going to 
spread ourselves all over the 
UJS. The Sun Belt will remain 
the centre of attraction and 
there will be no shortage of 
opportunities for us to build on 
what we already have.” 

MICHAEL CASSELL 


repairs 


OVERSEAS CONSULTANCY 

Power project in Botswana 


KENNEDY and Donkin Africa 
(Botswana) (KDA(B)) and 
Watermeyer Legge Piesold and 
U him. inn (WLPU) have been 
retained by Botswana Power 
Corporation (BPC) as consult- 
ing engineers for the Morupule 
power project. 

This comprises three 30 MW 
coal-fired power stations to be 
sited adjacent to the existing 
Anglo-American colliery at 
Morupule, 8 km to the west of 
Palapye, together with some 
350 km of 220 kV transmission 
lines. These will provide the 
first interconection of BPC*s 
northern (Sashe) and southern 
divisions. * 

Equipped with pulverised 
fuel boilers, the power, station 
will feature air-cooled conden- 
sers to conserve water, which 
will be piped from a wellfleld 
some 50 km to the north-west. 


Planning for 
Gulf University 

BRITISH ARCHITECTS Shep- 
pard Robson Overseas have com- 
pleted -the master plan for the 
Arabian Gulf University Project 
to be built in Bahrain. 

The university will be a 
regional centre for learning and 
research to serve the people of 
the seven Gulf States who have 
jointly sponsored the project. 
Designed to accommodate 
10,000 students in the year 
2004 the first phase is expected 
to be ready for occupation in 
the autumn of 1985, with 3,000 
students in residence by 1992. 

The main 400 hectare site is 
at Sakhir, to the south of 
Manama and in addition to the 
teaching buildings includes a 
conference centre, central 


Finance has been applied for 
from World Bank, African De- 
velopment Bank, Common- 
wealth Development Corpora- 
tion, European Investment 
Bank, Kuwait Fund, Saudi Bank 
and the Arab Bank for Econo- 
mic Development in Africa. 

Work is proceeding with site 
investigations and it is expected 
that the first of the major con- 
tracts. covering civil engineer- 
ing works, turbine/generators, 
condensers and boilers will be 
awarded by the third quarter 
of this year. 

The first unit is due for com- 
pletion by October 1985 with 
the following two units at 
three-monthly intervals there- 
after. 

Total cost of the project is 
estimated ■ at US$2 62m 

(£145.5m). 


library, computer centre, and 
the administration buildings. On 
a second coastal site of 32 hec- 
tares, at Ras Nawmah, will be 
a Marine Science Centre and a 
recreational area with water 
sports facilities for students 
and staff. 

A team of academic advisors 
from British universities and 
polytechnics has collaborated 
with the architects. 

It is expected that tenders 
will be invited from major in-, 
ternational construction com- 
panies during the next 18 
months. 

Associated with Sheppard 
Robson Overseas on this project 
are— Sir Alexander Gibb and 
Partners (engineers); Iraq 
Consult (architects and Islamic 
advisors); John Kelsey Asso- 
ciates (landscape architects); 
and Hanscomb Partnership 
(cost consultants). 


MAJOR CIVIL engineering 
works are to be carried out to 
structures on the waterways fol- 
lowing the decision by Govern- 
ment to increase Grant-in-Aid to 
£37Bm for the fiscal year 1982- 
1983. 

British Waterways Board 
I chairman. Sir Frank Price, said 
the increase in finance being 
made available enables the 
Board to make real progress in 
dealing with major problems 
on waterway structures now 
some 150-200 years old. 

Repairs to major structures 
to be undertaken indude: Ells- 
worth Tunnel (Grand Union 
Canal, Northamptonshire); 
Netberton Tunnel (Birmingham 
Canal Navigations) replacement 
of & section of the tunnel floor- 
ing; Preston Brook Tunnel 
(Trent and Mersey Canal, 
Cheshire) replacement of a 
collapsed section of tunnel 
lining; Boddington Reservoir 
(supplies the southern section 
of the Oxford Canal) repairs to 
the headbank to satisfy the re- 
quirements of the reservoirs in- 
specting engineer and to im- 
prove reservoir capacity; 
Coombs Reservoir (supplies the 
Lower Peak Forest Canal) 
strengthening of headbank and 
provision of wave walls; Beeston 
Weir (Trent Navigation, near 
Nottingham) works to stabilise 
the side weir following deter- 
i ioration; and Stoke Bardolph 
Lock (Trent Navigation, near 
Nottingham) second stage of 
works to stabilise structure. 

Irrigation in 
Mozambique 

SIR M. MacDONALD AND 
PARTNERS, in association with 
Hunting Technical Services, 
have been appointed to carry 
out a feasibility study for the 
Fief antes River integrated crop 
production project in Mozam- 
bique. 

Doe for completion later this 
year, the study will examine 
the technical feasibility and 
economic viability of the de- ' 
velopment of about 16,500 bee- 1 
.tares on the right hank of the 
Elefantes river, downstream of 
Massingir dam, for irrigated 
agriculture. Studies will include 
topographic and soil surveys, 
hydrology, agriculture, engin- 
eering, economics and manage- 
ment. 

Being carried out for the 
Secretary of State for the 
Limpopo and Tcomati Region, 
Government of Mozambique, 
the study is funded by the 
Kuwait Fund for Arab’ Econo- 
mic Development. 


WHEN BRITISH GAS started 
to convert everybody’s gas burn- 
ing equipment from town gas 
to the natural variety. Hum- 
phreys and Glasgow decided to 
i enter this field, using expertise 
already available from work in 
I the chemical, pharmaceutical 
: and. other process industries. 

Initially (he diversification 
was successful and the company 
established a subsidiary. Hum- 
phreys and Glasgow Services 
(HGS>. to handle the work. The 
company soon became second 
largest in .the field, and 
blossomed into installing 
related heating and ventilating 
services. 

When a local builder went 
bankrupt, HGS was invited by 
a housing authority to complete 


the modernisation of an estate, 
and so entered the building 
field. 

But this departure from tradi- 
tion has now run into a loss- 
making era, and the company, 
has taken the rather courageous 
step of not seeking any further 
contracts in this area, although 
work is available. The group 
as a whole is nevertheless in 
profit for last year. 

The heating, ventilating and 
air-conditioning design skills 
required for offshore and pro- 
cess work have been reabsorbed 
into the parent company. 

Other companies have been 
appointed to act as managing 
agents .to complete existing con- 
tracts. Lee Beesley will deal 
with mechanical services; J. F. 


UK BUILDING CONTRACTS 


Lloyd’s new 
building for 
Gleeson 

M. J. GLEESON (CONTRAC- 
TORS) has a contract from Boris 
Construction, for the construc- 
tion of the superstructure of the 
new Lloyd's building in the City 
of London, the value of which 
is in excess of £16m. The 
contract will commence in May 
with completion in 2; years. 

Gleeson's has six further 
contracts worth over £3tn. These 
include a design and build 
contract by Vhe British Airports 
Authority for rhe extension of 
the British Caledonian Cargo 
Shed at Heathrow Airport. Value 
is £829,000 and completion is due 
on January T 1983; at Watford 
the company has a contract to 
build a warehouse for Reunion 
Properties Company, a member 
of the Hammerson Group, at 
£800,000. Work has commenced 
for completion at the end of 
August. 

Gleeson Civil Engineering has 
been awarded two contracts, the 
largest of which is a contract for 
the Welsh Water Authority’ to 
build a sludge digestion scheme 
at the Oueensferry sewage 
treatment works in Clwyd at a 
contract value just over £700,000. 
Work has commenced and is due 
for completion in 7S weeks. 

* 

A £6m contract for the second 
stage development of Halton 
District General Hospital, Run- 
corn, has been awarded to FAIR- 
CLOU GH BUILDING, north 
western (tivision. For Mersey 
Regional Health Authority, this 
is part of a major hospital, 
health centre and ambulance 
complex at Shopping City in the 
centre of Runcorn New Town. 


It will provide wards with 236 

beds and two operating theatres 
within four linked blocks, 
together with ancillary buildings. 
The brick-clad hospital buildings 
will have a reinforced concrete 
frame supported on the ground 
floor with precast concrete 
columns. Work has started on 
this 130-week programme. 

UNIT CONSTRUCTION lias won 
contracts in die north-west and 
Yorkshire totalling £5m. The two 
largest are for construction a 
new supermarket and shops for 
the Lennon Group, a £i.4m con- 
tract; and for Plessey Tele- 
communications, office building 

refurbishment work in Edge 
Lane, Liverpool, at £lm. 

Norwest Holst 


wins £9m 


NORWEST HOLST companies 
have been awarded contracts 
totalling £9m. These include: 
London and Leeds Investments 
has awarded a £940,000 package 
deal contract for the design and 
construction of 13 warehouses 
and industrial units together 
with forecourts and access road 
at Capitol Industrial Park, Kings- 
bury. London. The Worshipful 
Company of Haberdashers has 
awarded a £600.000 contract to 
develop a two-storey classroom, 
a single storey hall and staff 
building at Che hoys school at 
Butterfly Lane, Etstree. 

The Redditch Development 
Corporation has awarded a 
£1.5m contract for a reinforced 
concrete multi-storey car park 
extension in the Redditch Town 
Centre. The English Industrial 
Estates has awarded a £640.000 
contract for the construction of 
workshop units with associated 
external works at the Netberton 
Industrial Estate, Bootle, Mersey- 
side. 


Crendon 


Industrial 

Building 

Structures 


Crendon Corots Co. Lid. 

long Crendon, AylcsWrv. Buds KPtfi 9BB 

tel. long Ciendon £03*51 


Finnigan building in the south 
of England; and Wittshier 
Group companies building in the 
north (Leslie and Co.) and is 
Scotland iWikshier Scotland ). 
Contractual responsibility for 
these contracts remains with 
HGS. 

Fortunately most of the HGS 
staff not re-joining the parent 
company have been absorbed 
by .the companies taking over 
the contracts. 

TONY FRANCE 


£11.3m for 
Wimpey 

AVIMPEY CONSTRUCTION l?K 
has* been awarded contracts 
worth around £11. 3m. The . 
Manchester office has commenced 
work, valued at 17.3m, on a 
complex of buildings at 
Knmsford, Cheshire, for The 
National Nuclear Corporation. 
Work involves rhe erection of 
three 3-sitirey office buildings, 
one containing a computer suite, 
plus a single-storey canteen and 
recreation' building in reinforced 
concrete frame with brick 
cladding. Work has started for 
completion in September 19S3. 

A contract valued at just over 
£4m lias been placed with the 
Maidstone office by tile Greater - 
London Council far 154 brick- 
built dwellings. They will be « 
built in Tliamesmcad Tliorndcnc , 
South, Abbey-wood. SE2. Work ; 
Otaris this month for completion 
in the autumn nf 19S4. 
CONTRACTS WORTH £1.6m for \ 
public and private sector work t 
in Gwent. South Glamorgan and , 
Avon have been awarded tn 
FAIRCLOUGII BUILDING, Wales 
and south western division. Work 
includes an £SS0,Q0O Home Office 
contract for a boiler house 
and library at Swansea Prison, 
together with alterations to form 
a prison education block. Work 
has started on the two-year 
project. 

CONSTRUCTION OF a sewer in 
Aberdeen and building and civil 
enginereiog works in the North 
East, worth more than Dm. have 
been awarded to JOHN MOW- 
LEM. Major job is at Broomhill 
Road, 'Aberdeen, a £440.000 con- 
tract from the Grampian Regional 
Council to construct a { mile 
length vf 4 ft diameter sewer 
tunnel, line it conventionally 
with concrete segments and 
install associated manhole ' 
accesses. ' Work has started and 
completion is due in late spring. 


i •! KliiV 


' :.!VV ' 'V; 1 .' • 

! I 



Who housed Shakespeare, Bogart and Beethoven 

in a single development? 


•The Barbican Centre for Arts and Conferences istbe largest 
development of its kind in Western Europe; and itsmain contradprsHre one 
of Europe^ best known construction groups- Johnlaing. 

The Centre includes a 2, 000 -seaiconcerthall (abasefor-the London - 
Svmohony Orchestra), a theatre (a Londonhomeforthe Royal 
Shakespeare-Company), an art gallery and three cinemas. . 

Ha^g been in business for over 130 years, we now operate ȣ overthe 
worid and our activities encompass the whole spectrum of construction - 
and civil engineering work. We have the resouicesand expertise to 


undertake the largest and most complex contracts, but we're equally 
capable of handling smaller projects. 

r . Like Shakespeare, Bogart and Beethoven, our particular combination of 
talent and expertise has made, us leaders in our field. If you have a . 
construction taskanywhere in Britain or overseas just talk to Laing -and 
see who builds the bek value out of long experience. 

Client City of London Corporation Architect Chamberlin, Powel! & Bon 

Quantity Surveyor Davis Betfidd & Everest Engineers: OveArup & Partners 


John Laing Construction Lim’rted-London Region 
137/139 BrentStreet, London NW44DB.Tel: 01-203 0466 
Head Office 

Page Street, Mill Hill, London NW7 2ER.T61: 01-9593636- 

LAING 

Local, national, international 




•' • . "•^VX ’■ ■ '-i**! 1 ' ‘‘; v 


Fiaancial Times Monday March S 196S 


TECHNOLOGY 


EDITED BY ALAN CANE 


Ferranti hazard monitor 
for safer oil platforms 

BY MARK MEREDITH, SCOTTISH CORRESPONDENT 


FERRANTI COMPUTERS has 
developed a microprocessor 
controlled hazard monitoring 
system to take some of the 
human, error and much of the 
cost out of dealing ■with fire or 
explosion risks on offshore plat- 
forms. 

The use of microprocessors 
has enabled Ferranti to offer a 
system which has drastically 
reduced the amount of wiring, 
the space required for 
machinery to monitor all parts 
of the platform as well as the 
flexibility to adapt to existing 
and future smoke and gas detec- 
tion systems. 

The system is designed for 
offshore operators updating the 
safety systems on their oil or 
gas platforms as well as con- 
struction companies building 
new offshore rigs. 

Safety offshore is still con- 
sidered too high a risk to judge 
the development of prevention 
systems on the basics of statis- 
tics of past catastrophes, accord- 
ing to safety engineers. 

Drilling platforms may have 
up to £500.000 of wiring carry- 
ing information from detectors 
in possibly 2.000 areas through- 
out a platform to a central 
point. 

The central safety monitoring 
point usually has an illuminated 
board up to 30 ft long each 
light indicating the type and 
general 2one of a potential 
danger. 

The Ferranti system consoli- 
dates all incoming signals from 


detectors through microproces- 
sors to pinpoint the location 
and type of hazard on a video- 
screen. Combinations of signals 
can also be programmed to 
trigger special reactions in 
terms of safety precautions or 
emergency measures. 

The. videoscreen can produce 
any section or subsection of a 
platform in outline form and 
mark the area where the detec- 
tor has picked tip smoke or gas. 

The system automatically acti- 
vates certain emergency pro- 
cedures such as local sprinklers 
and also instructs the safety 
officer on the next step in his 
emergency procedures. 

Constant scan 

It is hoped that this elimin- 
ates the risk of oversight dur- 
ing the panic of a full-scale 
emergency. It is thought that 
many of the problems in deal- 
ing with fires and emergencies 
offshore are due to human error. 

The system will also instruct 
the operator in the necessary 
“ executive action ” necessary to 
fight a fire. Problems in deal- 
ing with a crisis can also be 
programmed into the software 
to locate potential obstacles such 
as blocked value or faulty wire. 

According to Ferranti, which 
has exhibited the system in 
Aberdeen, the fire and gas moni- 
toring systems are also con- 
stantly scanned for faults. 

The new system would replace 


Floating hose for LNG transfer 


TI FLEXIBLE TUBES 
(TIFT) has launched the world’s 
first floating cryogenic hose for 
the safe transfer at sea of 
volatile liquefied natural gas 
ILNG). 

Until now no means have 
been available for transferring 
LNG from a stricken ship at a 
safe distance, in circumstances 
where a rescue vessel cannot 
come alongside. 

TIFT, as a manufacturer of 
special hoses with experience 
in cryogenics, was approached 
by Shell International Marine, 
which identified a need for a 
floating hose. Interest was 
expressed by bodies responsible 
for marine safety, pollution con- 
trol and energy conservation. 


Financial and technical 
support was received from the 
Department of Industry and 
development work undertaken 
at TIFT’S Oldham plant and at 
the Shell Research’s Thornton 
centre. Development of the 
floating marine cryogenic trans- 
fer hose has cost £lm. 

The complete floating 
cryogenic hose based on TIFTs 
compoflex system, comprises an 
inner liquid gas carrying core 
of low temperature materials, 
an insulating layer that also 
provides buoyancy and a water- 
tight protective outer skin. 

The hose is designed to trans- 
fer 75,000 cubic metres of LNG 
in five days over a distance of 


- r .-r \ 


much of the extensive wiring 
by using a system of multi- 
plexing the many s i gnals from 
monitoring out-stations and 
sending them back on a single 
circuit. The circuit in turn can 
be duplicated as a precaution. 

One key advantage of using 
a microprocessor system is that 
it enables a single safety sta- 
tion to monitor several plat- 
forms. possibly from a single 
point onshore. 

Although a British advance 
into high technology offshore 
will be welcome, offshore 
engineers concede that this is 
a difficult market in which to 
make inroads. 

Civil engineering contractors 
are known to be conservative 
about their approach to safety 
systems fitted on platforms. A 
hard wire system using tradi- 
tional electromagnetic connec- 
tions are often considered tried 
and tested methods and eontrac- 
t'*:.: are reluctant to take on 
new systems, especially ones 
which involve decentralising 
much of the monitoring work. 

Computer engineers admit 
that the technology for this 
latest development in fire and 
gas protection has been around 
for years. 

Ferranti Computer Systems, 
Cheadle Heath Division jn Stock- 
port. developed the system 
within the space of five weeks 
once the go ahead was given by 
management following market- 
ing studies. 



Ferranti's microprocessor controlled system may take the 
human, errors out of fire and explosion, risks on oil platforms 

How to keep warm 
under the N. Sea 


300 metres in a sea state of 
2.5 metres of significant wave 
height at minus 162 deg C 
Under test conditions three 
lengths of hose have exceeded 
the design specification. 

Mr Peter Jackson. TIFT’s 
managing director, says: “So 
encouraged are we by the 
success of this project, we can 
now see many more develop- 
ments of the floating compoflex 
hose. 

“ The development of the 
marine cryogenic transfer hose 
demonstrates a successful 
collaboration between user, 
manufacturer and Government 
to solve a complex and import- 
ant problem.” 


THERMAL protection of divers 
in such cold sea areas as the 
North Sea is a constant prob- 
lem, but a U.S. research institute 
believes it may have at least 
part of the answer by using 
a hydrogen fuelled back-pack 
heater. 

According to BattelJe Colum- 
bus Laboratories, based in Ohio, 
work at the U.S. Naval Coastal 
Systems Centre, Panama City', 
Florida, would result in a ther- 
mal protection system providing 
two kilowats of heat for divers 
for up to six hours at depths 
of 450 feet 

Propane beaters already exist 
but are limited at greater depths 
because of the low vapour pres- 
sure of the gas. Hydrogen is 
not affected by this limitation. 

Battelle says that the system 
— about the sire of a scuba tank 
— will contain a catalyst bed of 
al uminium oxide platinum 


Telephone exchange for 
emergency situations 


A COMPACT, easy-to-operate 
telephone exchange for 
emergency communications 
systems has been developed by 
the Swiss company Indigel AG. 
Schaffhauserstrasse 60, CH-8450 
Andelfingen. 

Intended for use in civil- 
defence shelters, for rescue 
organisations or for other 
emergency operations, it per- 


pellets over which a recirculat- 
ing flow of oxygen will be main- 
tained by gas ejector. 

When heat is required a small 
flow of hydrogen can be intro- 
duced to the catalyst bed. The 
hydrogen will burn, flamelessly, 
in the presence of the oxygen 
and, other than heat, the only 
by-product of the combustion 
Mill be water. 

The heat can be removed 
from the bed via a water jacket 
and circulated to the divert 
suit by a pump. The design 
will include a system to prevent 
the build-up of hydrogen and 
overheating. 

Although' still in the study 
stage, Battelle hopes to produce 
a model for field experiments. 

Columbus Laboratories (con- 
tact Dene Zeldin) is at 505. 
King Avenue, Columbus, Ohio 
(614 424 7728). 

BY MAX COMMANDER 


mils the connection of up to 14 
sets and the establishment of 
five bi-directional communica- 
tions simultaneously. 

Hook-ups between several sets 
for conference purposes are also 
posable. Power supply is pro- 
vided by a mains connection 
and a built-in power source 
independent of the mains. 


Xerox 
establishes 
‘a lead’ 

ACCORDING TO a new market 
technology ' report 
Strategic Inc. that deals with 
the word processing typewriter 
market Xerox “ has clearly 
taken the product technology 
lead” wife its model 620 
Memorywriter. 

The study indicates that this 
market will grow from an 
installed base of 768.000 units 
in 1981 to more than SAm units 
in 1987, a compound growth 
rate of 28 per cent 

Contained in the report are 
analyses of the market, the 
technology, user requirements, 
evolution and the future pro* 
duct requirements of the elec- 
tronic typewriter market from 
secretarial workstations to the 
complete office system. 

The 100 page report, titled 
“Word Processing Typewriters 
— a Market in Transition,” is 
priced at £695 and is available 
in Europe from IPI, 134, Hol- 
land Park Road, London WU 
(01-221 0998). 

One man 

lighting 

operation 

INSTALLATION of Strip light- 
ing- has been reduced to a one- 
man operation by a new Osram- 
GEC “Speedpack” which con- 
forms to UK and European 
standards. 

A convention^ six foot 
fluorescent light fitting weighs 
16 lbs and takes two people to 
fit to the ceiling. By separating 
tiie components Gsram-GEC has 
been able to design a 7 oz 
fitting. 

After these have been 
screwed to the ceding and 
electrical connections made the 
backplate, into which the tubes 
fit is secured to merely by turn- 
ing two speed locks through 90 
degrees. 

The protruding twin connec- 
tors slide into a channel and 
the tube is rotated through a 
right angle to connect auto- 
matically' to the current This 
e liminat es any danger of hands 
touching the metal surface 
when connection is being made. 

Fitting the ** Speedpaek,” it 
is rfaimprf, takes less than half 
the time of a conventional unit 
and there is the added -bonus 
that it uses less current , It 
will be available to the trade 
next month. Osram-GEC, is at 
River Works, Witton, Birming- 
ham. 


Model for 

detecting 

pollution 

THAMES WATER, in coEabor*- 
tion with South West Water. 

has developed a radio-contitniea 

model aircraft which can detect 
flooding and pollution uangan 
automatic infra-red camera- The 
model with a 10 ft WMgSPan.iS 
to be demonstrated at North 
Weald Aerodrome at 1L30 am 
tomorrow. 

For single 
boosters 

A NEW version of the Prescon 
pressure control unit is avail- 
able from Pullen Pumps. 58, 
Beddihgton Lane, Croydon, 
Surrey (01-684 9521). The 
series “E" utilises Pullen's 
type CV vertical multistage 
pumps and is said to he ideal 
for single booster applications: 



Beating the 
price barrier 

NEW COMPUTER-aided deagn 
products from Quest Automa- 
tion of Ferndown, Dorset 
(0002 871498) are claimed to 
smash the price banner fora 
complete CAD facOiiy ^capable 
of printed circuit, board design 

and artwork generation. 

Quest says that the system, 
called Q-Design, offers all the 
necessary facilities for d^iga 
and draughting right through to 
fee production of fall manufac- 
turing documentation- ana pe 
control of subsequent manufac- 
turing processes. Basic pnee *sy 
under £25,000- 



Spring valves for boilers 

Hopkinsons of Huddersfield has introduced a hew range of 
high-pressure spring safety valves for use on boilers and 
pipelines. The range Is for steam pressures up to 3,000 lb 
(207'bar) and is available in four sizes from 2 indies to 4 
todies with options, of servo-loading or pneumatic assistance. 
The picture shows valves under test at the company’s 
Britannia Winks test rig. More on 0484 2217L 


COMPANY NOTICES 


CONTRACTS & TENDERS 


S ENTRUST LIMITED 

Oncorparawd In rt* Republic ol South Alrtra) 

{*• Sen trust 

At u aerwral meeting which ki to be held 
of Sent rust will propose a special reaolwlon 1" JK™* .SLUttS} 
shareholders who hold less than 100 ordinary shares l , oda-lot holders j and 
are registered as such on 5 March T382 *[■•}** -Vo f Idino 450 

their holding ro TOO ordinary shares or to n( 

The reason for the aboremenUonjU proposalls that 
Sentrusi's shareholders are Odd-lot ho, “« r *.- , 11,13 

to Sentmst In maintaining die share refl.ster as weil as t ^. pr !^, rva u .^ 
distribution of annual reports, circulars ano other company doaimenMi whim 
Is entirely disproportionate to th» SmdcJjJ Interest In Sen trust represented by 

” Ch Odd^ior ' *h orders will be entitled to subscribe for lancfcot ordinary shares 
to Increase their balding to 100 ordinary shan» by efrher-r _ . 

— subscribing fir tho required number off ordinary snares at c * n * 3 
share being the average of 

Johannesburg Stock Exchange C* JSE *•> for the polod Z3F«touary 19K 
to 4 March 1902) to the e>r««tttirt ordinary J*ar«s Wr that PWP«*C 
become available as a result of the failure of other tojMri of odd-taU 
to exercise that right to Increase their odd-lot holding. I* the number ol 
ordinary shares sought to be subscribed for exceed* the nu r ubor ol shares 
available. General Mlnlim Union Corporation u^erttfceflto **« 

the required number ol ordinary shares to die shareholders concerned at 

— ou?chSim| 0 %ie ,J reilufrc< number of sharw on the JSE or The Stock 
Exchanoe. London P' SEL 1 up to and Including 2 April 1982. 

cSw-TSt howS. wi« do not increase thslr. holdings to. 10 0 ordldannhanes 
as set out above wlll hare tfielr shareholdings 

preference shires and redeemed or the basis that odd- lot holders win receive 
Ms E»5l5f Sort shan certificate* f 

on the JSE and SEi. In respect of deals iff” J th? 

New share certifi-ates (aim Cheques in respect or tho proceeds W we 
redemption) will be patted tt shareholders entlued *52?“ JSfilf Uf l £{! te b2»er 
or within two weeks after the surrender or existing share certtficates whichever 

'* “W, decaffs will be contained In « circular wWeh will he hosted to 
shareholders by 19 March 19B.. 1U , 

Recon^date ***** Frtdw?S March 

Despatch of circular, notice of general meeting and . Marrf . 

form of etoctfoo Co storeholoen ■ ^ Monday 15 March 


TOcm or efecuron ro . . - . 

Last date for lodgement of election form to round 

up hnfriTnaA 

oid share certificates not good fbr delivery In respect 

of transaction, concluded alter 

Last dace for receipt of late elections to round op 
holdings 

General Meeting of Shareholders 

New share certificates and cheoues In respect or 
odd-lots posted 


Monday, IS March 

Friday. Z April 

Friday. 2 April 

Wednesday. 7 April 
Tuesday. IS April 


Wednesday. 1* April 
8v order of tho Board. 
GENERAL MINING UNION CORPORATION UMITEO 

Secretaries 


Registered Office Transfer Se crebrt Mi 

6 noil art Street. ReouMta ol South Africa 

Johannesburg. Ger^-ra) Minins Ufrttrn 

IOQ1 Co-po-atlon Limited. 

(P O Box 61 BIS Share Transfer Department. 

Marshalltown 21(17) 74-78 Marshall Street. 

Johannesburg 2001 
IP.O Box 61357 
Marshalltown 2107} 

CENTRAL MERCH ANT BA NK UMITEO., AtbWI 

(Merchant Bank Rogltrtared In the Republic of South Africa) 
B March 1982. 


per W. B. VISAGIE 
United Kingdom 
Hill Samuel Registrars 
limbed. 

6 Greencoat Place. 
London SW1P 1 PL. 


NOTICE TO HOLDERS OF EUROPEAN DEPOS ITARY RECEIPTS IEDR0 
RYOB1 LIMITED 

EDR Holden an lorormed that Ryctbf Ufnrted Hat paid 3 dividend to holder* 
ol record 30Ht November. 1961 of Yen 3.79 per Von SO Share of Common 
Stock and the Depositary has cm v erted the nee amount, after deduction of 
Japanese withholding taxes. Into United Status Dollar*. 

EDR Holders may now present Coo pen No. 2 , »or payment. 

■avipeot of the dividend wUh a 15% withholding tax Is subject to 
receipt by the Deomtary or tno Agent of a valid Affidavit .of Residence In 
a country having a Tax Treaty or Agreement with Japan giving the benefit 
ot the reduced withholding rate. Countries currently having such arrangements 
are as follows: 

Arab Republic of Denmark Italy Singapore . 

Egyut Federal Republic of Malaysia Spain 

Australia Germany The Netherlands Sweden 

Belgium Finland New Zealand Switzerland 

Brazil France Norway . United Kingdom 

Canada Hungary Republic of Korea United States of 

Czechoslovakia Ireland Romania America 


Czechoslovakia Ireland Romania America 

Zambia 

Falling receipt Of a valid Affidavit. Japanese withholding Tax will be deducted 
at the rate of 20% on the Gross Dividend .payable. Tho. fall rate Of 20% 
will also be applied to any Dividends unclaimed alter 30th June. 1982. 
Amounts payable per EDR of 10.000 Shares against Coupon No. 2 : 

Dividend Less 15% ’ Dividend Less 2o% 

Grass Dividend withholding Tax with hoi ding -Tax 

USS1 58.22 US$1 ZA40 USS12G.58 

Depositary Agent 

The Bonk of Tokyo Trust Company The Bank of Tokyo (Luxembourg) 5 -A. 
London Luxembourg 


CLASSIFIED ADVERTISEMENT 
RATES 


Property 8.00 27.50 

Residential Property ~ fi-00 20.00 

Appointments 8.60 29.00 

Business & Investment 
Opportunities 8.50 29.00 

Businesses lor 

Sals/ Wanted 8 JO 29.00 

Personsi 6.00 2D.« 

Motor Care 8.00 20.00 

Hotels & Travel 6.00 20.00 

Contracts & Tenders 8XO 27.60 

Book Publishers —net 12.00 

Premium positions writable 
(Minimum siza 30 column cm) 
£6.00 per single column cm extra 
For further details mite »: 
Classified Advertisement Manager 
Financial Times 
10 cannon Street, EC4P 4RY 


Per 

Single 

column 

line 

em 

i £ 

£ 

8.00 

2750 

GjOO 

20.00 

8.50 

29.00 

8.50 

29.00 

8J0 

29.00 

6.00 

20.00 

6.00 

20.00 

6.00 

20.00 

8XO 

27.50 

— net 12.00 


ART GALLERIES 


DftlAN GALLERIES, 7. Forehestcr Place. 
W2. 723 9475. PAINTINGS BY JON 
ATACK. Till 15th March. DaUr 10-5. 
Sab 10*1. 


CLUBS 


KINGDOM OF MOROCCO 

OFFICE NATIONAL DE L’EAll POTABLE 

Prequalification Call No. 6/D, SP/81 

SUPPLY OF DRINKING WATER TO 
LQUKKOS RURAL AREAS 


Mission: 

Mission; 


Missions: H — 1st draft, in detail; 

111 — Consultancy for call to tender; 
and IV — Participation in the selection of the tenders and 
and the supervision of works 
might be entrusted to the company selected fbr the feasibility 
study fbr operations to be specified later. 

The bid in figures and the deposit representing 1.5% of the 
amount of the bid must be included In an envelope bearing the 
term ** SOUM1S5ION ” endosed in a second envelope containing 
the technical and financial references of the bidder for prior 
studies of a similar kind and importance. 

Tender documents may be obtained at a cost of DH200.00 by 
writing to the Bureau dej Marches (Tenders Office) in Rabat 
at: Quartier Administrate. Payment is to be made to: Monsieur 
le Directeur GinfiraJ de I’ONEP, C.CP— Rabat 1 04-11 -MAROC. 
Each bid, bearing the reference number of the tender and the 
closing date should be addressed to tbe above address. 


COMPANY NOTICES 



AL SAUDI BANQUE 

1981 f Accounts 

The Board of Directors of AL 
SAUDI BANQUE approved the 
Accounts of the year ending 
December 31, 1981 at its meet- 
ing held February 24, 1982. 

Total assets are up 77% to 
reach the global figure of 
FF 6,622m and contra-accounts 
20% for a total amount of 
FF 1,908m. 

Net profit after tax rose to 
FF 21.9m or an increase of 81 % 
over 1980. 

At Shareholders' annual meeting, 
April 20, 1982, the Beard will 
recommend the distribution of a 
10% dividend on paid-up capital. 


PERSONAL 


SUPEKUNTEL — Ask your Architect to 
spoclfy the unaispuUd duality brand 
leads- Tor year new Jiewc. 


WORK INVOLVED 

0 — Description of the present situation 

1 — Fesibility study: draft a global pUn leading to 
year 2020: 

* 1st draft summary of proposed solutions; 

• Final report. 


TATE & LYLE PLC 


NOTICE TO HOLDERS OF ’ 
BEARER SHARE WARRANTS 

NOTICE IS HEREBY GIVEN to Haitian OT 
B«*rcr Warrants for ORDINARY STOCK 

OH 

tmprtiinacy stock of _7,Sp net In 

or 


NOTIFICATION OF 
NEW INTEREST RATE 
BOROUGH OF BOURNEMOUTH 


ss.oqojmo Variable rate stock 
19 83 

{ISSUED CTH SEPTEMBER 1B7B> 

ThejDtcrest garment due on 7th September 
1982 in respect of tbe period *tn Mares 
t982 Jp 60) Scgtcmcer 1332 will be 
£7.3128 per cent (loss lAegme tax} being 
u tbe rats of £14.6250 par cent oer 
annum (determined In accordance with Ole 
terms ■ of tone as bang a rroruin- Of 
1 oer cent per annum above the average 
rates indicated by the Rato onca Banks to 
Midland Bank Limited). 

. Stb March 1982. . 



The Executive Secretariat of the Economic 
Community of West African States invites to 
international Tender under .its integrated 
telecommunication programme: - 

1 — Subject: r 

This invitation to tender is for the supply, 
installation and commission of equipment for 
fourteen microwave links, five local automatic 
exchanges and four international telephone 
transit exchanges. * 

2 — Description of works: ; V • 

Tender documents consist of six volumes: 

VoL I General conditions of tender , and 
contract 

VoL n Technical specifications for trans- 
mission systems ' ^ - 

VoL HI Technical specifications for telephone ^ 
exchanges facilities r . . - v ' : ' 

VoL IV Technical specifications for outride 
• plant facilities 

Vol. V- Technical specifications for buildings 
and access road facilities 

Vol. VI Technical specifications for. power - 
supply system ' 

3— 3 Funding sources: 

Facilities to be provided trader this invita- 
tion to tender are to be financed by ECOWAS 
Fund for Cooperation, Compensation and 
Development, European Development Fund 
CEDF), European Investment Bank, Italian 
Government and by purchaser credits, 

4 — Participation: 

a) Contracting firms from the European 
Economic Community and from ACP shall 
tender for the following: 

Lot No. 3: Transmission facilities for Ouaga- 
dougou — Bolgatanga route • 

Lot No. 4: Transmission facilities _ for Fada 
N’Gourma-Porga route - - 


Lot No. 6: Transmission facilities for Bissau- 
• Zigmnchor and Bissau-Koundara 

• .routes ■ 

Lot.No. 7: .'TrarMssion facilities for Koun- 
danfc-Mali route 

Lot No. 9: Transmission facilities for Kor- 
hogOrSflfcasso route 

Lot No. 20: International transit centre (CTO 
. •: for Praia. ; J 

Lot No.- 21: International transit centre (C*rn 

-farBassan v ' 

Lot No. 22: International and national transit 

' Rmju? ^ l0Cal excban S* for 

invitation to Tender is open to all 
contracting fi rms for the other Lots nos/ 

"5 — Acquisition of the Documents: 

ma y * e obtainable on payment 

. .ECOWAS Executive Secretariat 
. > ;6,Kng£eorge VBoad 


^ Be- maiie" Sr banfc brder in 
fevour of' Executive Secretariat of ECOWAS 


©— fusing in rentier ana opening of the Bids: 

Tenders ...should be sent to ECOWAS 
Esecutxvje Secretariat,. 6, Kin* George v Hoad. 
Lagps, Nigeria, to arriye at the latest by 30th 
; ApriI1982 at I10Q boursGMT. , , y 


The Tenders -will, be' opened in public on 
1st May 1982Jn , Cotonou, People’s Republic of 

Benin. 


7— Extra information: 

S? an 5 r extra information* please contact 
me Executive Secretariat in Lagos, 6, King 
George V Road, - Lagos/ Nigeria, F3&B 12745. 
Telephone: 636841: Telex: 22633 NG ECOWAS. 












?'^ anc ^ Times Monday March S 19S2 

TELEVISION 


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&4IK7jS am Open University 
tnhf only). 9.08 p ot scSSS. 
Colleges. 10.00 Von and Me. 
10.15-12.07 pm For School* 
Colleges. 1220 News After 
Noon. LOO. Pebble. Mill at- One. 
TLM Camberwick .Green. 2 J»i 
For Scbools, Colleges. 3.00225 
3Mla Smith’s Cookery Course. 
3-53 Regional News tor Fn giand 
(except London). 325 Play 
School. 420 Pixie and Dixie 
■425. Jactanory. 440 Scooby and 
Scrappy Doo. 5.00 John Craven’s 
’Newsrouni 5.05 Blue Peter. 
525 Ivor the Engine. 

5.40 News. 

6-00 Regional News Magazines. 

625 Nationwide. 

- 625 Doctor ’Who, -starring 
Peter Davison. 

720 Bret Maverick, starring 
James Garner. 

8.10 Panorama. 

9.00 News. 

925 Love Story; “ Alexa," by 
Andrea Newman. ; 

920 Police. Nine months 
Inside Thames VaUey 
Conatabidary. 

10.40 Film . 82 with Miles 
Kington. ' 

1120 Fete Sayers Entertains 
with his guest Frank 
Meld. 

. 1123 News Headlines. 

1125 Speak " for Yourself: 
Rudeness. 


All 1BA Regions as London 
except at. the following times: — 

ANGLIA 

1-20 pm ArigUa Naws. 230 Monday 
Fikn Maiinaa: "CftNstopher Columbus." 
starring Predrie March and ■ Floranc* 
EMridg*. 5.15 Um»Bra»ty Chftftenge. 

6.00 About Anglia. B30 Mavis Mem- 
or I us. 10 30 Anglia R sports. 11,00 The 
Pataca P-resants: Jack Jonas’ -special 
guests am VikkJ Caw and Lou ftawln. . 

12.00 Soparatar Profile. 12-30 am The 
Chop Next Door. : 

BORDER 

130 pm Border .’ Jiewa. ZOO Pihn: 
" Danger in Paradiae." 3.45 M or ay- Go - 
Round. -5.15 Radio. (LOO Loafksrotmd 
Monday. 5.15 The Sound Of . ... Warn 
S teen h ms. 630 Mr -and Mrs. 10-30 
The Monta Carlo Shaw.' 11.30 RL Action. 
12.15 am Border News Summary. 

CENTRAL 

1.20 pm Central News. 12.00 me 
Monday Screen ’ Mali net: "High 
Treason. '* 3.45 Monsy-Go -Round. 6M 
Central News. 10.30 Parents and Teen- 
agers. 11.00 Oahxrat News. 11.06 Left. 


(S) Stereophonic broadcast 
t Medium-Wave 

RADIO 1 

5.00 am As Radio 3.. 7.00 Steve 

Wright. 9.00 Simon Bates. 11.30 
Dave Lae Travis. ' ZOO pro Pauf 
Burnett- 5.00 Andy Peablaa. 7.00 
Stayin' Alive with Andy Peebles. 8.00 
David Jensen. 10.00-1230 John 
Peel (S). 

RADIO 2 

5.00\ am Ray Moore (S). --730 
Terry Wogan (S). *10.00 Jimmy Young 
IS). 12.00 Gloria Hunniford (S). Z00 
Ed Stewart (S).- 4.00 David Hamilton 
<S). 5.46 News; Sport.. 6.00 Stave 

Jones (S). 8.00 Folk on 2 (S). 9.00 
Humphrey Lynetton with the Bast of 
Jazz (S). 9.56 Sport* Desk. 10.00 

Monday- Movie Quiz with Rey Moore. 
10.30 Star Sound with Nick Jscksbn- 

11.00 Brian Matthew with Round. Mid-. 


Chris Dunkley: Tonights Choice 

Monday has become the strangest night of the week for 
sen-ous factual programmes. I TV’s Nature Watch, continues lie 
investigation of sense of direction which several p rogr am mes 
havfe considered in the past couple of years. Dr Robin Baker 
now reckons hie has located the ‘built-in magnetic material which 
explains this sense, and believes that its accuracy may depend 
upon die direction in which you sleep relative to the compass. 

BBC 2*s firo-pant series Imagined Worlds in which leading 
scientists explain recent changes in the way we view the universe 
starts, tonight with Professor Walter Gilbert looking at molecular 
biology and the process of deciphering the message ofDNA_ 

In Panorama on BBC 1 Michael Cockerill investigates the 
obsessive secrecy of British politicians and their relations with 
the Press lobby. Subject of Horizon on BBC 2 is “ K-Z ” or con- 
centrate syndrome: the difficulties experienced, often many years 
later, by those who have suffered prolonged imprisonment 

-Police on BBC 1 deals with the touchy subject of a death 
hr custody. 


6.40-725 am Open University. 
1025 Speak For Yourself. 

1L00 Play School. 

1125 Play It Safe ! 

2X35-11.50 Write Away. 

2.00 pm Long. Short and Tall 
Stories. 

225 Maths Help. 

2.40 Other People's Lives. 

3.05 The Computer Pro- 

gramme. 

t3.45 Star Movie: “ Dance. 

Girl. Dance,” starring 

Maureen O'Hara. 

5.10 Welcome Mr Lucas. 


Right and Carvtrr. 11.45 P»n* by Night. 
12.15 am . SonTMtong Different. 

GRAMPIAN 

9-2S am First Thing. ISO pm North 
Nam. 6.00 North Tonight. 6.30 Causa 
tor Concern. 10.30 Monday Movie; 
" The Hut Nina Months are the 
Hugest." 1Z15 am North Headlines. 

GRANADA 

1.20 pm Granada Reports. 230 
Monday Matinee: ” Guns ol Dartness." 
starring David Niven. 5.15 Dick Turpin. 
6.00 Private Beniamin. 6.30 Granada 
Reports. 9.00 Quincy. 1030 Danger 
UXB. 11.30 RL Action. 12.15 am Tha 
Odd Couple. 

HTV 

1.20 pm KTV News. 230 Monday 
Msh nee: " The Master of Ballantrse." 
starring Errol Ffynn. Roger Uveeey and 
Anthony Steel. 5.16 Difl'rent Strokes. 
6J» KTV Nows. 1038 HTV Nows. 10.30 
5oop. 11.00 Parents and Teenagers. 
1130 The Living Legends of Jazz and 
Blues: The Dave Brabeck Quartet. 

HTV Cymru /Wales— As HTV - West 
except 1200-12.10 pm Dbow Mam Yn 
Owed. 4.15-430 Mr Magoo. 4 >15-5.15 


t5.40 Laurel and 'Hardy 

6.00 Maggie. 

625 Mr Smith’s Favourite 
Garden. 

625 News Summary. 

7.00 Riverside. 

725 Little Goldfish. 

7.45 Imagined Worlds. 

8.15 Marti Caine. 

9.00 Not The Nine O’clock 
News. 

925 Horizon. 

1020 West Country Tales. 

1A50 NewsnigbL 
1125-12.05 am TOlfe-Montage. 


S6r. 6.00 Y Dydd. 630 Report Wales. 
7.00-730 Nature Watch. 830 Yr Wyth - 
nos 1130 World in Asaon. 1130- 

12.00 Parents and Teenagers. 

SCOTTISH 

130 pm ScwrwNi News. 2.00 Monday 
Metineg: " Francis Gary Powers." 3.45 
Mona ry -Go-Round. 5.15 Emmerdaia 
Farm. 6.00 Scotland. Today. 6.40 
Cnmedesk. 1030 Space to Breathe. 
11.30 Monta Carlo Show— Nana 
Mouskouri. 1Z36 am Late Cad. 

TSW 

130 pm TSW News Headlines. 230 
" Nothing But The Beat," starring Alan 
Bates, Denholm EMrat. Harry Andrews 
and Mitticanc Mamn. 4.12 Gua Honey- 
bun's Magtc Birthdays. 5.15 Emmsf- 
d afa Farm. 630 Today South West. 
630 Tbs Two of Ua. 1032 TSW Lata 
News. 10.35 Ladiea’ Man. 11.05 
Gotfing Greats (Genu Sarazen). 1130 
Ten s pa ed and 8 town Shoe. 12.25 am 
Postscript. 1230 South West Weather 
and Shipping Forecast. 

TVS 

1.20 pm TVS News. 230 Monday 
Matinee: " Ring of Fire," starring 


RADIO 


night. 1.00 am Trucker’s ’ Hour (S). 
2.00-5.00 You and tha Night and the 
Music (S). 

RADIO 3 

636 am Weather. 7.00 News. 7.05 
Morning Concert (S). 8.00 News. 

636 Morning Copcert . (cennnoed). 
9.00 News. 0.05 Tbia Week’s Com- 
poser: Shostakovich (5). 10.00 Music 
for Organ (S). 10.35 Brahma string 

quartet recital (S). 11.10 Marin Marais 
chamber music recital (S). 11-35 

BBC Scottish Symphony Orchestra (S]. 
1.00. pm News. 1.(5 BBC . Lunchtime 
Concert fS). 2.00 Matinee Musicals 
(S). 3.00 New Records (S). 4.55 

News. 5.00 Mainly for Pleasure fSJ . 
530 " Die Maistarslnger. von Nuni- 


barp." opera in three acta by Wagner. 
from the Royal Opera House, Covant 
Garden (sung in German) Act 1 (S). 
6.55 The Poetry of John Donne. 735 
" Die Meistarsinger von Numberg." 
Act 2 (S). 830 Carl Andre: Tha 

American artist in conversation with 
Edward Lucie-Smith. 9.05 " Die 

Meistarsinger von Nurnbarg." Act 3 
(S). 11.00-11.15 News. 

RADIO 4 

6.00 am Nawg Briefing. 6.10 Farm- 
ing Week. 6.25 Shipping Forecast. 
630 Today. 835 The Week On 4. 
8.43 Glyn Wo ramp delves into the 
BBC Sound Archives. 8.57 Weather, 
travel. 9. CO News. 9.06 Start the 
Week with Richard Baker (S). 10.00 


LONDON 


920 am Schools Programmes. 
1200 Cockleshell Bay. 12.10 pm 
Rainbow. 1320 That's The Way. 
LOO News, plus FT Index. 120 
Thames News with Robin 
Houston. 120 About Britain. 
200 Money-Go-Ronud: Joan 
Shenton and Tony Bastable 
investigate consumer problems 
and offer advice. 1220 Monday 
Matinee: u Id The Doghouse,’’ 
starring Leslie Phillips and 
Peggy Cummins. 4.15 Dr 
Snuggles. 420 Graham’s Ark. 

4.45 Murphy’s Mob. 5.15 Mr and 
Mrs. 

5.45 News. 

6.00 Thames New 5. with j 
Andrew Gardner and Rita ! 
Carter. 

625 Help! with Viv Talyor 
‘ Gee.. 

625 Crossroads. | 

7.00 Nature Watch. j 

720 Coronation Street 

8.00 Dead Earnest. 

820 World in Action. 

9.00 Hill Street Blues: Daniel 
J. Travanti in “ Pesto- 
lozzi’s Revenge.” 

10.00 News. 

1020 “ The Oscar.” 

12.40 am Close: u £it up and 
* Listen” with Ann Todd. 

t Indicates programme in 
black and white 


David Janaaon. 5.15 Radio. 530 Coaat 
to CoajL 6.00 Coaat to Coast ( con- 
tinued). 630 EfnmBfd«l« Farm. 10.30 
A Full Ufe: Rumor Godden uiks about 
The strong views she holds an dtp 
way society works. 11.00 ThPillar: 
" Murder m a One Act Play." 12.2S am 
Company. 

TYNE TEES 

-9.20 am The Goad Word. 9.2S North 
East News. ISO pm North East News 
and Lookvound. 12.30 Monday 
Matinee; " Jetatorm." atariing Richard 
Aatsnfeo rough. 5.15 Dtfl'reivt Strokes. 

6.00 Nor* East News 6.02 Mr and 
Mrs. 630 Northern Ufa. 1030 North 
East News. 1032 Briefing. 11.15 
Hammer House ol Horror. 12.10 am 
ReconcMistion. 

YORKSHIRE 

130 pm Calendar News. 230 Mon. 
day Matinee: "The Sandwich Man." 
starring Michael Bentine. 5.15 Mr and 
Mrs. 6.00 Calendar (Emley Moor and 
Belmont editions). 630 It’s e Vet's 
Ufe. 9.00 Quincy. 1030 With a 
Little Help. 11.00 RL Action. 11.45 
Superstar Profile. 


News. 10.02 Money Box. 1030 
Daily Service. 10.45 Morning Story. 

11.00 News. 1136 Down Your Way 
visits Saddlcwortti, Lancs. 11.50 
Poetry Please! 12.00 News. 12.02 pm 
You and Yours. 1237 Semi-Circles 
with Paula Wilcox and David Wood. 
12.55 Weather, travel, programme 
news. 1.00 The World at One. 1-40 
The Archers. 1-55 Shipping ForpOBt- 

2.00 News. 2-02 Woman’ a Hour. 3.00 

News. 3.02 Afternoon Theatre (S). 
436 Scene from a Bridge. 4.45 Story 
Time. 5.00 PM: News Magazine. 530 
Shipping Forecast. 5.55 Weather, pro- 
gramme news. 6.00 Newt, including 
Financial Report. 630 Just a Minute 
(S). 7.00 News. 7.06 The Archers. 
730 Start the Week with Richard 
Baker <S). 8.00 The Monday Play 

(S). 930 Kaleidoscope. 939 Weather. 

10.00 The World Tonight. 1030 Science 
Now. 11.00 A Book at Bedtime. 
11.15 The Financial World Tonight. 
1130 Today in Parliament. 12.00 News. 


Sounds from the Portuguese 






& 


FROM THE sound of it one 
would expect Poly dor V Harle- 
quin * to be a predictable light 
opera and not an aitemational 
copyright case, full of surprises. 
The course it took could make 
one believe that aH is nftw weU 
because, at last both the EEC 
Commission and the member 
governments have agreed and 
the European Court is Luxem- 
bourg, has confirmed, that what 
is law for the goose is not 
necessarily law for the gander. 

I, for one, feel unable to re- 
joice. In the matter of 
exhaustion of rights, London, 
treats aK countries alike but dif- 
ferentiates between trademarks 
aad copyright. The European 
Court treats alike all industrial 
property rights but differen- 
tiates between member and non- 
manb er countries, Tbe more 
lawyers you allow to tinker with 
I it, the less predictable and 
i uniform law you get. 

I The occasion for the display 
of so much legal learning was 
provided this time by a dispute 
concerning the sound recording 
of “Spirits Having Flown” by 
a group known as the Bee-Gees. 
The copyright of these records 
is held by RSO Records Incor- 
porated, which licensed Potydor 
Ltd. in the UK and Phonogram 
and Polygram Discos in Portu- 
gal. All these companies belong 
to one group. 

It seems that the records 
were cheaper in Portugal t han 
in the UK but. whatever the 
reason, the admitted fact was 
that a UK importer, Simons 
Records, imported these records 
from Portugal and sold them in 
the UK to Harlequin, a retailer 
of records and tapes. Polydor, 
which saw in this an infringe- 
ment of its copyright licence, 
asked the High Court for an 
; order prohibiting Simons from 
importing and Harlequin from 
selling and distributing these 
records and cassettes. 

Simons and Harlequin’s 
defence was that in view of 
the agreement between the 
EEC and Portugal and of the 
case law of the European Court, 
Polydoris copyright was ex- 
hausted as soon as the records 
were placed on the Portuguese 
market by their associated 
company. The Chancery Divi- 
sion of the High Court refused 
to refer the case to the Euro- 
pean Court in Luxembourg, 
and granted an injunction 
until full trial, preventing 
Simons from importing and 
Harlequin from retailing the 
records. 

The Appeal Court held, in 
the Revlon* case, that when a 
group of companies manufac- 
tures and sells a product of 
international reputation under 
the same trademark in dif- 
ferent parts of the world, 
□either the parent company nor 
any subsidiary’ can complain in 
the UK if those products are 
used, sold and re-so4d under that 


trademark. Neither trademark 
rights, said the court, nor the 
passing-off law, may he used 
by a multinational group to 
enforce price-fixing by prevent- 
ing goods put by it into circula- 
tion in another country from 
being exported to the UR! and 
sold there at prices determined 
by the importers. Not even 
Dr Hartmut Johannes, the 
father of the EEC doctrine of 
exhaustion of industrial 
property rights could have said 
it belter. 

THE WEEK IN 

BY A. H. HERMANN, 


The Polydor r. Harlequin 
case reached die Court of 
Appeal at about the same time 
it gave its decision in the 

RerIo« case. However, the 
copyright case was not settled 
on the basts of English law as 
the trademark case was. 
Instead, the Court of Appeal 
asked the European Court to 
say whether the protection 
available to Polydor under Sec- 
tion 16 (2) of the Copyright Act 
1956 was not excluded by the 
agreement between the EEC and 
Portugal prohibiting restrictions 
on imports in the same terms 
as the EEC Treat)', and whether 
the provisions of this treaty had 
a direct effect in the UK which 
English courts must respect. 

Before the European Court, 
Harlequin relied on a long 
scries of judgments in which 
the court ruled that a trade- 
mark or copyright owner must 
not stop a parallel importer 
competing with the licensed 
distributor. Interpreting 

Articles 30 and 36 of the EEC 
Treaty, the court established a 
long time ago the same exhaus- 
tion doctrine as defined in the 
Perion judgment of the Court 
of Appeal with one important 
difference. The European Court 
has so far approved parallel 
imports (and the resulting in- 
fringement of copyright, trade- 
marks and patents) only in 
trade between member states: 
by contrast, the Court of Appeal 
defined its exhaustion doctrine 
only in respect of trademarks 
but in universal terms, approv- 
ing parallel imports into the 
UK from countries all over the 
world as long as the trademarks 
were held by companies belong- 
ing to one and the same group. 

Many people — and the 
pharmaceutical industry in 
particular— believe that the 
European Court went too far 
when it interpreted Articles 30 
and 36 of the EEC Treaty in a 
way which gave the green light 
to parallel importers, and in 
this way endangered price 
differentials existing between 
member states. Harlequin now 
argued that the same words as 
used in the treaty must also 
have the same effect when 


used in the treaty between the 
EEC and Portugal— and, by 
implication, also in some 
hundreds of agreements con- 
cluded between the EEC and 
associated states and terri- 
tories. 

To accept this argument 
would have meant leaving the 
EEC open to cheap imports 
which arc barred by means of 
industrial property rights. The 
EEC Commission, which 
pioneered the exhaustion 
doctrine, has now joined the 

THE COURTS 

Legal Correspondent 

UK. Germany. Denmark. France 
and the Netherlands in oppos- 
ing its application to imports 
from outside the Community. 
The EEC Commission argued 
that “a mere identity of word- 
ing cannot be conclusive os to 
the nature or content of the 
obligations undertaken, or as 
to the legal meaning and effect 
of the provisions in question.” 

The European Court con- 
firmed that the provisions of 
the agreement between the 


Community and ‘ Portugal are 1 
in several respects simi la r to ! 
the EEC Treaty provisions for 
free inter-state trade. That, 
however, said the court, was no 
reason for extending the case 
law of the court to trade rela- 
tions with Portugal. The scope 
of the case law must be deter- 
mined In the light of the 
objectives of the Community 
which seek to create A "single 
market reproducing as closely 
as possible the conditions of a 
domestic market.” Moreover, 
the instruments which the Com- 
munity had for achieving uni- 
form application of Community 
law had no equivalent in the 
relations between the Com- 
munity and Portugal 

To put it simply, we have no 
means of ensuring reciprocity 
of treatment for parallel im- 
porters in Portugal, and in the 
present protectionist mood of 
the Community it would hardly 
make sense to take the free 
trade clauses seriously. 

* European Court Lurembou ’l C»i« 
270/BO Judgment February 9 1382. un« 
reported. 

t Court ol Appeal. London. Revlon 
end Asms v Cripps and Lee and 
Others Judgment Re* 79790 2375, FT 
European Law Letter. February 1900. 


Silver Buck puts on a 
top-class exhibition 


SELDOM can there have been 
a more rapidly changing build- 
up to a Cheltenham Gold Cup 
than the past month’s. 

The run of unexpected 
developments shows no sign of 
ending. On Saturday, last 
year’s Gold Cup runner-up. 
Silver Buck, came back 10 (he 
forefront of the belting: while 

RACING 

BY DOMINIC WIGAN 

Dickinson’s intended runner. 
Brega wn. lost what had seemed 
a guaranteed place through his 
defeat at Haydork. 

Those who had excluded Silver 
Buck from this year’s festival 
considerations because il would 
be difficult to get him ready 
after a lengthy lay off. have 
already been proved wide of 
the mark follow ng Saturday’s 
display. 

Looking far more forward, at 
Market Rasen Silver Buck pave 
a top-class exhibition of fast and 
fluent jumping in the Cox- 
Moore Sweaters Handicap. He 
found no difficulty conceding 35 
lbs to Moor Close. 

A year ago Dickinson's 10- 
ycar-old looked, for a while like 
holding illustrious stable com- 
panions Little Owl and Night 
Nurse in the Gold Cup. If there 
is drying ground this time then 


the 8-1 still available for Stiver 
Buck will be good value. 

This afternoon, Fred Winter, 
who looks like having Venture 
To Cognac and Midnight Court 
on duty next week, will be seek- 
ing a bold display from Grand 
National hope Rough And 
Tumble. 

The perennial Aintree visitor 
makes his long-awaited re- 
appearance at Windsor where 
he contents the Henlys Land- 
Rover Hunters Chase. This 
three-mile event is on the sharp 
side for the one-paced Rough 
And Tumble but connections 
must he hopeful of him making 
the frame. He should go well 
without, perhaps, taking advant- 
age of the 5 lbs he receives from 
in-form Gay Tab. 

Two other likely winners on 
the Berkshire course are Mr 
Gumbnntu, for the March Handi- 
cao and Going Strait, among the 
runners for the third division 
of the Thames Novices Hurdle. 

WINDSOR 

120— ■ General Breyfax 

2 . 00 — Midnight Song 
220— -Mr Gomboots** 

3.00— Gay Tab 
320 — Shouti tout 

4.00— Broad Principle 
420— Going Strait*** 

SEDGE FIELD 
2.45 — Gaelic Harp 
3.15— Cashea* 



mm* 

. T 1 


: 


thin 


fibre equivalent to 6,000 telephone channelsl 






The Hitachi concave Grating 
optical Dimultiplexer 

Recognizing the many 
advantages of optical fibres 
over conventional copper wire 
communications (data signals 
can travel at greater speed for 
longer distances without 
interference), Hitachi 
developed the concave Grating 
optical Dimultiplexer. 

This device is able to split a 
light beam Into a number of 
different waves, its also able 
ro focus those separate waves 
Into single optical fibre. 

But making such a device 
wasn't easy, one production 
step, for example, required 
cutting sawtooth grooves at a 
rate of 300 lines per 1mm on a 
sphere with 50 mm radius of 
curvature. 

Through their vast 
experience In mlcro-etching 
and Innovative use of 
computer controls. Hitachi 
project technicians were able 
. to overcome these problems 
and cut these grooves to an 
accuracy of ±1 micron. 


Hitachi'S advancements in optical fihre transmissions 
prormse lasier. more efficient communications. 

Fibre optics Is one of ttie most exciting new fields of 
communications. By transmitting light through a fibre instead of 
etertrterty tnrough wires, many thousand times more data 

" development that excites computer operators and 
tJmhone engineers alike. Even the most modem telephone 
sv^emswiN not be able to cope with the ever-increasing flood 
nf information if using conventional wiring alone. 

Now Hitachi, with their newly developed Concave Crating 
optical Demultiplexer, is nelping to take that progress a gant 


step further. This highly complex device -splits' a single &eam of 
light Into a number of different wavelengths, according to the 
natural spectrum. 

This makes it possible for each wavelength or chahnel to 
carry a full load of signals. Another Dimultiplexer is used to focus 
these separate waves Into a single fibre for transmission. And yet 
another Dimultiplexer works at the receiving end to spirt these 
focused or bundled waves again. 

• its a development that multiplies the amount of data that can 
be sent by speeiof-Jfght communications’ 
as proud as Hitachi is of their success in developing this 
Concave Grating optical Dimuittptexer, its Just one example of 
Hitachi’s commitment to Improving the quality of life through 


technology. Right now, Hitachi's research and development 
technicians are working on hundreds of other promising 
projects - from microwave ovens that “talk’ to full-scale waste- 
water treatment facilities. 

You see, Hitachi has some pretty bright Ideas about tomorrow. 

^HITACHI 

A world Leader in Technology 









12 


THE MANAGEMENT PAGE 


EDITED BY CHRISTOpmER UffltNZ 


An 



down an 




Ray Dafter on Tesel, a small company with big ambitions in a high cost industry 


TUCKED away in an industrial 
estate on the edge of Basing- 
stoke, Hampshire-— dose to a 
big Salisbury's depot— Tesel 
Services is keeping track on 
worldwide oil drilling ventures. 

Ba sin g stoke may not give the 
impression of being at the heart 
of * the oil indutry, the UK 
equivalent of Houston, Calgary 
or Dhahran. But the location has 
its advantages for an emerging 
company trying to muscle its 
way into the 35bn-a-year well 
logging business. 

As Michael Gahan, its chief 
executive, points out, Tesel 
wants to be among the high 
technology companies which 
have settled in the Thames Val- 
ley. That helps with recruitment 
and links with computer boffins, 
for instance. The company has 
a.i'gn sought to be close to Dorset 
which, as demonstrated by a 
number of important discoveries 
(Wytch Farm in particular), 
holds considerable potential for 
oil development 
In addition, management 
wants to be handy to Heathrow 
Airport in order to jet away 
quickly to the oil exploration 
areas of the world. Coincident- 
ally, the location also helps 

Where time 
is money 

SCORES of oil companies 
throughout the world will 
today begin examining 
drilling information to see if 
they have beaten the odds 
and struck it rich. 

The proeess — the culmina- 
tion of most exploration 
ventures — goes on around the 
dock, day In and day out. 
And in the present boom 
drilling conditions it is pro- 
viding a big and fast-growing 
business for the companies 
which service the thousands 
of exploration teams in 
operation at any one time. 

Among the most buoyant 
service sectors is the wireline 
industry which helps oil 
companies build up a picture 
of rock and reservoir condi- 
tions at the bottom of a well, 
typically tousands of feet 
below the surface. The 
Industry has acquired its 
jargonish name from the slim 
measuring — or logging — 
equipment which is lowered 
In the well on the end of a 
wireline. 

Wireline companies use a 
wide variety of tools of vary- 
ing degrees of sophistication. 
They range from perforating 
guns, which shoot holes in 
the well pipe to allow oil to 
flow, to neutron and acoustic 
logging equipment which 
measure the porosity of the 
surrounding rocks. 

Few sectors in the oil 


Gahan as he commutes weekly 
to his home in Paris. 

Tesel is the sort of UK-bred 
oil services enterprise that is 
being encouraged by the Depart- 
ment of Energy’s Offshore 
Supplies Office. The Govern- 
ment is anxious to see the rapid 
development of UK companies 
whidi can compete with the 
Americans and establish opera- 
tions which can keep going long 
after North Sea oil runs out 

Not that Tesel is alone. The 
UK already has an established 
logging company, BPB Instru- 
ments, part of the BFB Indus- 
tries Group. So far the company 
has concentrated on the geo- 
physical logging of mineral 
prospects, rather than oil wells. 
But that policy appears to be 
changing. 

The last annual report of the 
group said that BPB Instru- 
ments had “started a major 
capital expenditure scheme for 
developing new equipment for 
use in connection with hydro- 
carbon exploration." The com- 
pany adds that it will have units 
operating in Europe and North 
America later this year. But 
that is all BPB is revealing for 
the time being. 


Tesel has been more forth- 
right with its plans. Established 
in 1980, the company, currently 
with about 55 staff, has given 
the impression it is the sort of 
precocious operation welcomed 
by the Offshore Supplies Office. 
Certainly it cannot be accused 
of being faint-hearted. 

Tiny Tesel, set up with £5m 
of capital, is aiming to compete' 
worldwide alongside the indus- 
try leaders, in particular 
against the biggest of them all 
— Schlumberger — which has a 
market value of around £7.Sbn. 
What is more Tesel intends to 
compete at the sharp end, in 
areas ,of high technology. 

With this in mind the com- 
pany has deliberately turned its 
back on the U.S.. the traditional 
home of independent logging 
companies where new operators 
can earn a decent living pro- 
viding relatively unsophisti- 
cated measuring services in the 
thousands of simple, shallow 
wells drilled each year. 

Tesel, says Gahan, may join 
forces with an established 
American company to offer a 
U.S. service. But the company’s 
marketing drive is being aimed 
at other parts of the world. To 


this end, Tesel has just won 
what it regards as a break- 
through contract to assist a 
subsidiary of Indonesia’s state 
oil corporation, Perta mm a, with 
logging operations. The com- 
pany, which expects to be 
operating four logging units in 
Indonesia within the next year, 
is inching its way into the Far 
East under the noses of S chlum- 
berser. 

But it will probably be in the 
UK that Tesel will have its 
main opportunity to establish a 
reputation. The North Sea pro- ■ 
vides one of the most challeng- 
ing environments for those 
involved in drilling services: 
offshore logistical and weather 
problems, deep wells, high 
reservoir temperatures and, 
often, high pressures. 

For Tesel, North Sea experi- 
ence has still to come. It has 
started by offering services to 
operators of onshore wells 
where a number of drilling 
companies — such as British Gas 
Corporation and British Petro- 
leum — have made available oil 
wells so that wireline logging 
equipment could be tested. 
Harold Hughes, director and 
general manager of British 


WORLDWIDE WIRELINE SERVICE INDUSTRY SALES ($m) 


1972 

1977 

1981 (est) 

1982 (est) 


S chlu mb erger 

246 (60.7) 
840 (64.6) 
2J10 (64.0) 
3,250 ( 64.2) 


(market share — per cent — in parenthesis) 
Dresser Gearhart* McCullough, 


Atlas 
58 (143) 
155 (11.9) 
407 (10/1) 
515 (10.2) 


12 (3-0) 
56 (43) 
290 (7.4) 
380 (73) 


NL Industries 
19 (4.7) 
50 (3.9) 
200 ( 5.1) 
260 (5.1) 


Wei ex- 
Halliburton 
18 (4.4) 
40 (3.1) 
125 (33) 
160 (33) 


52 (12.8) 
159 (123) 
388 (9.9) 
495 (93) 


o Wireline service only, not equipment 


business can match the wire- 
line services industry's 
growth record (see table). 

The sector is also notable 
for the dominance of its lead- 
ing companies, one in particu- 
lar. Although there are 
probably over 300-400 
Independent wireline opera- 
tors, it -is the American 
company, Schlumberger, 
which has the stranglehold 
on the industry. Indeed, log- 
ging a well is known in the oil 
industry as “running a 
Slumberjay.” 

Schlomberger, founded in 
the 1920s by two French 
brothers— -Marcel and Conrad 
Schlomberger — is reckoned 
to account for 64 per cent of 
worldwide turnover. If any- 
thing its position is becoming 
stronger. 

Schlomberger has demon- 
strated what can be achieved 
if a company is given (or 
gives itself) a sizable head- 
start in an industry- Credited 
with Inventing the oil logging 
business Schlumh erger was 
the virtna] lone runner until 
the 1950s when it started to 
feel the impact of competi- 


iles; figures are tor fiscal year ending January 31 of the foil owing year. 

Source: Paine Webber Mitchell Hutchins Inc. 


tion from such companies as 
Dresser Industries and Gear- 
hart Industries. 

With the McCullough 
division of NL Industries and 
Wei ex-Halliburton account- 
ing for a further 8.3 per eent 
of the market between them 
there is comparatively little 
business left to be shared 
among the hundreds of 
Independent operators — 
probably less than 10 per 
cent 

The entry barrier for these 
independents is not as formid- 
able as it might first appear, 
particularly if the operators 
are willing to concentrate 
only on the run-of-the-mill 
wells where the holes have 
been lined with casing pipe. 
A truck fully equipped to 
work in cased boles can be 
purchased off the shelf for 
about 5250,000 - 5300,000. 
According to Paine Webber, 
among itae leading analysts in 
this field, a typical truck can 
generate a cash flow return of 
over 50 per cent capital 
employed and an after-tax net 
profit of between 12 and 15 
per cent 


In general, bigness appears 
to be an asset Oil companies— 
har dly shr inking violets them- 
selves— feel more comfortable 
when they are dealing with a 
large, well-established service 
company with a stack of back- 
up facilities and experience. 
With each well perhaps cost- 
ing millions of dollars, quite 
possibly tens of millions, time 
is money. 

According to the chairman 
of one wireline service com- 
pany, the oil industry would 
probably be willing to Invest 
as much as 4 per cent of total 
well costs on logging opera- 
tions. This compares with, 
about 3 per cent at present 
and around 2.5 per cent in 
1969. 

This increasing qnest for 
information together with the 
challenge of operating in 
deeper and deeper wells-— 
where the temperatures be- 
come greater and the pres- 
sures more intense— should 
help to sustain the wireline 
industry’s growth even if the 
pace of exploration and pro- 
duction drilling begins to tail 
off, as is evident at present 








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Gas’s exploration subsidiaries, 
said tie Corporation was 
anxious to encourage the 
development of British exper- 
tise. 

It was as a result of one of 
these test projects— in a BP- 
operated Midlands well in 1980 
— that Tesel was forced to 
reassess its whole development 
start egy. Tesel was using stan- 
dard logging equipment bought 
“off the shelf" in the same 
manner that most U.S. indepen- 
dents acquire their wireline 
tools. 

Both BP and Tesel realised 
that the- results -obtained from 
this measuring equipment were 
not of the standard required 
outside of the U.S. “We changed 
our policy and changed our 
marketing development. We 
slowed the evolution of the 
company by 12 months,” says 
Mr Gaban. The company decided 
to build up an armoury of more 
sophisticated tools, the sort used 
by the’ very big companies. To a 
large extent this equipment is 
being developed by Tesel, with . 
the help of sub-contractors like 
the Atomic Energy Authority at 
Harwell. 

“We are putting in comput- 
ing systems at the heart of our 
equipment," says Mr Gaban, a 
nhvsirist who worked for 
Schlumberger between 1955 and 
1966 before setting up his own 
company. Data Analysis. That 
company was one of the . 
pioneers in the use of computer 
technology for geological 
analysis. 

Gahan explains that it is 
even possible that Tesel could 
beat Schlumberger at its own 
game and introduce the latest 
logging technology more 
quickly. “Schlumberger is an 
excellent company. But because 
of its size there is a delay in 
the implementation of new 
technology; it is not in their 
interest to change too rapidly.” 

Schlumberger, not surpris- 
ingly, disagrees: “We have tried 
to be the one to make techno- 
logical breakthroughs,” says 
Seth McCormick, public rela- 
tions manager of the normally 
secretive corporation. “ More 
than half of our revenue comes 
from new services which were 
not in existence five years ago.” 
He also questions “how signi- 
cant an inroad into our business 
a small company can make.” 

A similar view was expressed 
by another “giant” of the in- 
dustry — Dresser Industries. “It 
is fairly easy for companies to 
get into the low-technology end 
of the business but the odds are 
overwhelmingly against sm a l l 
companies trying to break into 
the very high capital-intensive, 
technology-intensive part of the 
business ”, said Herb Ryan, 
Dresser’s director of investor 
relations. 

Thomas Escott an oil field 
services analyst and co-author 


«ri 

w*. 




' *| 

: , . : 


• • Hugh RouHedge 

Michael Gahan inside a Tesd logging truck. He will soon be 
supplying four logging units to Indonesia and is inching Ms way 
into the Far -East under Schlumberger’s nose 

of a recent wireline logging many as 30 logging units world- 
status report published by finan- wide. _ 


analysts 


Webber A logging truck costs about 


Mitchell Hutchins, reckoned it £200,000 to put on .the road, 
would be “ unusual for a small Tesel is expecting each truck 
company to come up with a new to generate revenues of about 
tool ”. He added: “ I have. never $70,000 (£38,400) each month- 
known a small wireline company $ll_75m annually from 14 units. 


to develop a technique ahead 
of Schlumberger." 


41 As we achieve maturity we 
will slow down our expansion," 


Escott estimates that a new says Gahan. “A structure that 
company might need to spend at is stable cannot expand at more 
least ?50m on research and than 20 per cent a year.” But 
development over the first five by . then— say the mid-1980s — 


years of operation in order to 
develop a “full suite” of 


Tesel hopes it will have proved 
there is a place for a competi- 


sophlsticated tools. A further tor to the likes of Schlumberger 
$50m might be needed to estab- and Drtsser. 

lisb a base, hire equipment, and r“ — “ — “ 

recruit management and crews. ■; — 'm • 

Tesel says it is not surprised ftflMDAMV MfYTlf*F4B 

by such assumptions, although wwlwll*Jqlw Iww I Iwtw 

it feels a start can be made with 
much less. It is confident that 
the £5m raised in 1980 through 
privately placed shares and loan 

notes will be sufficient to put Aflianz Versicherungs-A 

the company well along the- ■ . 

road. So far the company has 

invested about £ 2 ^m. its Shareholders’ Letter with i 

present complement of three 

To the Shareholders. 

(for offshore work) IS expected On the basis of the operating figun 

to grow to 14 units within the for the war ended 51k Daoemb 

TiPTt 19 months Hv the end of overall. Underwriting profit raeigl 

nexi mourns. Z>y me ena Ul returns on investments were ogam 

next year, when the company enable us to recommend the Super 

intends to be trading profitably, d 

| rtn - n lJ L- rmnnfiort Al « WOnuWlOO flfOW pr HtUUfTl inCOHH) 

Tesel could be opera ting as AJIUmz worldwido groift pramiun 


Management 

abstracts 

cjiawg in g • Walk Fatten®. 
J. - WeUens in Industrial, and 
Commercial Trunins (UK)i 

Get 81 

Discusses employee reactions 
to’ the introduction of a com- 
pressed working week, outlines 
how the extra leisure time Is 
u tilis ed and. examines whether 
“ moonlighting” Increases; 
points to employer/employee • 
benefits of part-time work. 
Formulating a Campany 
Sttategy: Y. K. GodiwaUa + 
others in Manager^ Plan- 
ning (US.), Sep/Oct 81 . 
Discusses factors t o be_ t aken 
into account in. devising - a 
strategy, suggests <H>P£ 
tanities/risks should . oe 
related to the competence ofa 
company, and identifies ^aspects 
of a “ strategy mrs, based on 
the environment, company size 
and production methods. 
Integrating strategic planning 
Into the management process. 
T. H. Nay lor in Long Range 
Planning (UK). 81 ' ~ . 

Explores reasons why 
strategic planning is often re- 
garded simply as an appendage 
to the management process; 
discusses how to co-ordinate 
strategic plans with the operat- 
ing plans of line management; 
stresses the need for the sup- 
port of top and line manage- 
ment for strategic planning and 
suggests how to obtain it 

Warranting innovative projects. 
E. B. Roberts + A. BL F us- 
feld in Sloan Management 
Review (U.S.), Spring SI 
Describes steps in technology^ 
based, innovative projects, dis- 
cusses characteristics and skills 
that members of proj ect team s 
should possess and— stressing 
the need to view innovation in 
terms of how it affects the 

organisation— examines types 

of activity that members need 
, to perform; considers aspects 
of project-team management. 

These abstracts are con- 
densed from the abstracting 
journals published by Anbar 
M anag ement Publications- 
Licensed copies of the original 
articles may be obtained at 
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Shareholders' Letter with PreSminary Results for 198! 

Munich. 5th March, 7982 

To the Shareholders, 

On the basis of tha operating fig pres so far available we expect results 
for the year ended 31 si December, 1381 to have been satisfactory 
overall. Underwriting ' profit margins continued to decline, but good 
returns on investments were egaio achieved. The overall profit should 
enable us to recommend the Supervisory Board and the Annuel General 
Meeting to. declare an. unchanged dividend of DM 10 per share. 
Worldwide gross premium income DM-13 billion 
Allianz worldwide groan premium Income (including domestic and 
foreign Ilia Insurance business) amounted to same DM 13 billion, 
representing an increase of 11 per cent on the previous year. 

"In direct domestic -business, which still accounts for around 88 per- 
cent of premium income In .the Allianz Group’s consolidated accounts, 
the increase of some 9 per cent to DM 6.32 billion (1980 DM 5.81- 
biinoiO was In line with the Insurance Industry generally. Approximately 
two. fifths of insurance directly written by the Allianz Group in 
Germany is accounted lor by motor insurance business. Volume in this 
close was adversely effected by e contraction of the market engendered 
by deteriorating economic conditions. The premium increase of 8.3 per 
cent, wee thus .largely attributable to an adjustment or third-party 
motor premium -rates to reflect rising claims costa. Cyclical influences 
had a strong impact on engineering limn, particularly contractors’ sli- 
riek insurance, where, new business Is closely tied to the state of the 
construction market. Some cresses of property Insurance, such ee 
householders’ insurance for both buildings snd contents, achieved 
double-digit rates of growth. Industrial fire insurance saw a satisfactory 
premium increase as » result of the increasing effectiveness of remedial 
measures which strengthened the position of the Allianz Group In this 
Important sector of the Insurance market. Another class of insurance 
• which recorded above-average expansion was personal accident 
hojinees- As expected, the rata of growth of premium income in general 
liability Insurance decreased slightly. a . 

Domestic market inward reinsurance — for the most part life, sickness 
end; credit risks — accounted for sbourDM 680 million (1980 DM 830 
million) of rim tntel premium income to be shown In the consolidated 
financial statement. 

Satisfactory qrawth In tarelan business 

Worldwide minium income of DM 13 billion included DM 1JB blUTon 
In respect of premium* written abroad. In DM terms the Increase was 
about 30 per cent. As a result of currency movements during the year 
and Mali Inflation rates in. same countries, reel growth. we s, however, 
much liu. - 

Of worldwide premium Inoome written abroad, some DM 480 million is 
-Included in the Allianz- ■ Group accounts. The business of our foreign 
subsidiaries, the greater pen of which Is transacted In the United 
States of Amarice. is not consolidated. 

Declining profit margin on underwriting 

Viewed sa e whole, the / A’-ienz Group’s claims experience in the 
domestic market showed little change. Looking at the individual classes 
of business, both burglary and householders’ insurance showed a sharp 



were not sail efacroiy. Other classes of business, above ail personal 
accident end general liability insurance, made satisfactory profits. The 
results of third -party -motor insurance, the largest single dess of 
business. Droved battjr than expected, as the increase in claims eased 
off .somewhat during the second half of tha year.. 

Our underwriting experience abroad vanad greatly from country to 
country. As a result of difficult economic conditions in a number of 
countries, the results of .our branch, offices abroad ware overall not 
satisfactory. Our .foreign subsidiaries abroad also showed a hlohlv 
divertient trend. - . ■ J 

Summary • 

.Taking everything - Into consideration, . we anticipate for Allianz - 
yeralchB rungs -AG. after wmrrfurs t o and from the claim* equalise tion 
fund, e decline in. underwriting profits. The final figures fir foreign 
busmese- and reinsurance hmra not yBt been determined. Investment 
in come .ro se by. approximately 10 per cent but on the other hand, 
deprecation end pension provratona were higher. The total result will 
however, leave ua sufficient scope to recommend a maintained dividend 
•nd a -further allocation, to resmvss.. the latter being •esentlal In view 
of the Increasing risks connected with our business. low 

■' Yours faithfully; 

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Financial Times Monday March 8 1982 


THE ARTS 


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Underneath the 
Arches 

by MICHAEL COVENE-Y 


Vulgar, crass, crude, corny 
and loud, this affectionate wal- 
low in nostalgia for the vanished 
era of the Crazy Gang leaves a 
critic vainly fumbling for his 
intellectual superiority. Both 
he and the audience are best 
advised to deposit that article 
along with their coats and hats 
at the cloakroom. 

The Gang played the Pal- 
ladium for eight years between 
the wars and the Victoria 
Palace for. 15 years after the 
Second. This unpretentious tri- 
bute by Patrick Garland, Brian 
Glanville and Roy Hudd begins 
with Christopher Timothy as 
Cbesney Allen trying to over- 
come chaos in the stalls and 
embark os a potted biography 
of his partner Bud Flanagan. 
The narrative line is pedestrian 
to say the least, but no oppor- 
tunity is lost to .flesh it out with 
vivacious tableaux bursting with 
colour, high-kicking chorus girls 
and Crazy. Gang routines. 
Roger Redfarn's production has 
nothing much up its sleeve, but 
the sleeve is just fine, best 
patchwork. 

Thus, mention of Bud's early 
days in the Shoreditch Music 
Han leads to a busy backstage 
scena with bad jokes firing off 
at all angles, the Tiller Girls 
gamely traversing the stage in 
a riot of blue and white 
feathers, an escapologist jump- 
ing around in an unyielding sack 
and the Memory Man forgetting 
his entrance. When Bud and 

Waterloo Room 


Ches meet during the war, the 
sequence explodes in an unruly 
parade sketch with “ Monsewer” 1 
Eddie Gray (played by his , 
brother Billy) flitting through 
with an unexplained juggling I 
act - : 

. . Florrie Forde is invoked, and j 
on comes Julia Sutton to preside ! 
magisterially over a few com- 
munity songs. None of this does' 
very much to clarify the rela- 
tionship between Bud and Ches, 
but Roy Hudd and Mr Timothy 
supply a series of pleasant varia- 
tions on the conflict of comic 
and stooge, of unbridled high 
spirits and anxious reservations. 

At Chichester last summer, 
the whole fracas was so . glori- 
ously unexpected in the sedate 
environment of the Festival 
Theatre, that the structural 
weaknesses went, as far as I 
was concerned, largely unobser- 
ved.. It is s marvellous moment 
when Chesney Allen himself 
takes the stage to sing several 
of his old numbers with Roy 
Hudd. But this is the one single 
instance in the show when 
greater subtlety and more 
imaginative stagecraft might 
have paid greater dividends. 

As it is, there is still plenty 
to' enjoy, not least the sight of 
Jhe Gang (which also includes 
Joe Black, Tommy Godfrey and 
Don Smooth ey) tottering on as 
senescent pantomime dames 
and, later, dropping doubles 
entendr&s like lead balloons at 
the foot of Eros’s statue in a 
wonderful flower girl sketch. 


British String 
Quartets 

by ANDREW CLEMENTS 


The second concert in the 
second series which the Park 
Lane Group has organised 
around the British string 
quartet was given on Friday by 
the Coull Quartet For all that 
the series (especially the first 
in 1979-80) has provided 
opportunities to hear unplayed 
or neglected. works, the logic of 
the enterprise escapes me. Why 
string quartets? Is the thesis 
that .the quartet medium un- 
covers something . fundamental 
and. essential in the tradition o4 
20th-century British music, or 
is it intended more modestly., as 
a survey to inform and encour- 
age further quartet writing? 

No further enlightenment was 
forthcoming from the Coull 's 
programme, other than a purely 
negative presentation of works 
that seem to be written against 
the grain of the medium. Wal- 
ton's solitary quartet of 1947 
ended the programme, and that 
works against the grain almost 
to the point of generating Its 
own muscular appeal. The fami- 
liar catalogue of -Waltonian ges- 
tures are here scaled down and 
forced into a chamber mould, 
and the chafing that ensues is 
quite productive. -.Rubbra's first 
quartet (written in 1933 and 
extensively revised in 1946 with 
advice from Vaughan Williams) 


plunges straight into a thick 
polyphonic argument, with the 
first movement straining to find 
its lyrical core. The slow move- 
ment and finale are better 
balanced, and the simpler theme 
plus accompaniment- of -the 
Lento is . effective enough, 
though the final fugue provides 
contradiction rather than reso- 
lution. 

But it was the second- quartet 
of Christopher Brown, receiving 
its. first London performance, 
which stretched credibility most 
profoundly. Nothing here that 
could not be found in a dozen 
other string quartets . mainly 
from the first half of the 
century, but never, together in 
a ringle work which wore its 
eclecticism like a banner, 
brazenly displayed af every 
stylistic twist and turn. Brown 
has fashioned his quartet into 
two big movements (the work 
lasts 26 minutes) which to- 
gether provide the functions of 
a four-movement quartet plan. 
It was written in 1975 and is 
dedicated to the memory of-the 
victims of the Birmingham pub 
bombings the previous year. 
That implies a powerful, com- 
mitted statement but I failed 
on this first hearing at least to 
find that power transmitted or 
even suggested. 


Bradford's first major jazz festival 


Bradford’s first major jazz 
festival featuring leading 
groups from the U.S. and 
Britain will be held in the city 
on the- weekend of March 12, 
13 and 14. 

The festival is being mounted 
by the Jazz Centre Society in 
association with Bradford 
Council’s economic develop- 
ment unit and the three main 
concerts will be filmed by York- 
shire Television. Further sup- 
port comes from West York- 


THEATRES 


shire County Council. 

On Friday March 12 Mingus 
Dynasty and the Stan Tracey 
Big Band present a concert 
tribute to two jazz giants — 
Charlie Mingus and Duke 
Ellington. 

Saturday March 13 jazz/rock 
meets salsa with Barbara 
Thompson’s Paraphernalia, and 
the salsa/funk ten-piece 
Cayenne. 

On Sunday the Art Ensemble 
Of Chicago and the Bobby 
Wellins Quartet will appear. 


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FUVINC DUTCHMAN. 




Covent Garden 


Swan Lake 


Hugh RoutWga 


The Penguin Pool. London Zoo. by Lubetkin. 


Architecture 


What happened to Lubetkin? 


COLIN AMERY 


The award of the Royal Gold 
Medal for Architecture 1982 has 
been made to the architect of 
the famous Penguin Pool at the 
London Zoo. This Pooh with its 
double spiralling ramps on 
which the penguins promenade, 
has been called by Sir Nikolaus 
Pevsner, "a tour de force of 
that international modern style 
which derives so much from Le 
Corbusier." As Pevsner also says 
the pool comes close to a piece 
of abstract art 

The architect of the zoo build- 
ing is Berthold Lubetkin. He is 
a man who has completely dis- 
appeared from the architectural 
stage. He was born in Georgia 
in 1901, was brought up in Mos- 
cow, and went to Poland, France 
and Germany to train as an 
architect. In 1931 he arrived in 
England and in 1932 he formed 
the partnership known as 
Tecton. 

He has been honoured by the 
Queen on the advice of the 
Royal Institute of British Archi- 
tects. It is a belated honour for 
a pioneer who for 20 years in 
England sought to establish the 
new architecture. ' He became 
disillusioned with the progress 
of his kind of architectural 
thinking and in 1951 retired to 
his farm in Gloucestershire hav- 
ing dissolved the Tecton partner- 
ship in 194S. 

Lubetkin has been described 
as an architect of anarcho- 

Barbican Hall 


socialist persuasion who later 
showed a sympathy for Soviet 
Social Realism in his writings in 
the 1950’s. He was one of the 
founders of the group known as 
the MARS group (Modern Archi- 
tecture Research) with EL Max- 
well Fry: Connell, Ward and 
Lucas; Weils Coates, and the 
writer P. Morton Shand. The 
MARS Group was the English 
wing of CLAM. 

This Congres Intemationaux 
d’ Architecture Moderne was 
founded in 1928 to promote a 
new kind of city. The MARS 
Group rather naively dreamed 
of a future “which must be 
planned, rather than a past 
that must be patched up." 
Lubetkin soon realised that 
MARS was not likely to be able 
to- organise for the future and 
so he abandoned it in 1936 and 
joined the far more left-wing 
ATO (Architects’ and Tech- 
nicians’ Organisation). This 
survived until the 1950's as a 
body devoted to the solution of 
the problem of working class 
housing. 

During the *20s Lubetkin 
was engaged to “ translate " the 
designs of the constructivist 
' Melnikov for the pavilion in 
Paris for the Exposition des 
Arts Decora tifs. After design- 
ing trade fair buildings for the 
USSR and further studies in 
Paris he designed, his first 
major work, a block of flats for 
a site on the Avenue de Ver- 
sailles in Paris. In Paris he 


was in contact with Le Corbusier 
and Soutine. 

Tecton consisted of seven 
partners in 1932 — all architects 
who were to have a major in- 
fluence on the spread of modern 
architecture in England; 
Lubetkin, Chitty, Drake. Dug- 
dale. Harding. Samuel and 
Skinner. In 1938 Denys Lasdum 
joined the practice and became 
a partner in 1945. Others who 
worked with Tecton included 
included the artist Gordon Cul- 
len and the architect Peter 
Moro. 

The best building of the 
partnership was Highpoint I, 
a cleverly planned block of 
flats in Highgate. It was built 
in 1936 and was soon followed 
by Highpoint 2 in 1938. Both 
blocks are raised up on pilotis 
and well sited among the trees. 
The entrance to Highpoint 2 is 
guarded by two copies of 
Caryatids of the Erechtheum — 
one of them looking prophetic- 
aly to the right. 

The Finsbury Health Centre 
with its tiled exterior and 
splayed walls is derivative of 
Le Corbusier and inside was 
designed for the observation of 
the working classes as part of a 
social experiment. Also in 
Finsbuty is the Lubetkin Lenin 
memorial. Lubetkin designed a 
fair number, of private houses 
for people and animals— his 
elephant house with four round 
pavilions is far more dramatic 
than the bungalow he designed 


for himself at Whipsnade. 
Lubetkin's interest in form led 
to some of the ideological 
struggles of the 1950s and there 
were those who felt that he had 
deviated from the functionalist 
norm. His struggle to make 
modem architecture accessible 
lias never been fully under- 
stood — and his efforts wetre dis- 
missed as “mannerist." 

From 1948 to 1951 Lubetkin 
was architect to the Peteriee 
Development Corporation hut he 
resigned in the early stages of 
the struggle to build the new 
town. For the past 30 years until 
he moved into Clifton at Bristol 
he has fanned. His architecture, 
like that of many others of his 
generation, now appears as an 
almost alien attempt to estab- 
lish an abstract geometric 
aesthetic. 

His place is secure as one of 
the emigre pioneers who found 
a welcome in England. He must 
feel, as do those who have 
belatedly given him this honour, 
that his work was never com- 
pleted. Why did he stop prac- 
tising? What does he feel 
went wrong with his approach 
to architecture? 

He says himself that his work 
“is an embodiment of classical 
calm and clarity of ordered 
logic and equilibrium ” and that 
it constituted a challenge to 
" surrounding perplexity, and 
despair.” The unanswered ques- 
tion remains, why did he give 
up the fight and who was res- 
ponsible for his despair? 


How to present the 19th- 
century classics, how to dance 
them, are problems facing any 
major ballet company. Texts 
can be revised, stagings re- 
thought, and usually mal- 
treated; the only impossibility 
is to ignore them. The Royal 
Ballet's way. in the main 
respectful, is based on the 
historical .fact of having 
acquired honest versions of 
these works in the 1930s, 
through Nicholas Sergueyev’s 
notation records of the St 
Petersburg presentations. This 
Vic-Wells inheritance, in its 
■grand and immediately post- 
war state, remains a point of 
reference having almost mystic 
significance for company and 
audience alike. 

Revision brings outcry in 
favour of the old productions: 
thus the fate of various new 
Sleeping Beauty stagings, and 
of Giselle. But these pur- 
portedly “authentic" texts are 
a mass of new material, inser- 
tions and re-writing. Like the 
Leslie Hurry designs for the 
current Siran Lake, which arc 
a conflation of after-Lhoughls; 
like the David Walker Messel- 
inspired decors for Beauty and 
James Bailey's revival of his 
earlier Giselle decoration, they 
are exercises in the worst kind 
of “ putting - the - clock - back " 
nostalgia. 

I think that all three produc- 
tions have never looked so 
marmoreal, so lifeless as they 
do now, enshrining tradi- 
tionalism at its most unthinking 
and fusty. In Swan Lake, which 
I saw twice at the week's end, 
the opening scene offers the 
quaint sight of Siegfried thank- 
ing four of his mother's court 
ladies for the gift of a cross- 
bow: peasantry drinking and 
fraternising with the geniry 
(wbicb is what 1 take a gaggle 
of hatted and upholstered 
supers to be) while the Tutor 
bumbles about the stage and 
the dance soloists, in variously 
fancy dress, do their stuff. 

This would matter less were 
there some indication of a per- 
formance-style — classic, vital, 
of the 1980s and not the 1940s 
— informing the dance. The 
general level of the corps de 
ballet is high; young soloists 
whom I saw in various roles 
— David Peden splendid in the 
first act trio; Ravenna Tucker, 
Fiona Chadwick, Michael 
Batchelor in the ball-room 
quartet— more accomplished. 
There were also blustery, 
ill-shaped accounts of variations, 
and an improbable air to the 
third act national dances, all of 
which need to be re-choreo- 
graphed and re-thought: the 
clatter of booted feet in the 
Spanish dance; the weird 


posturing and weirder dress of 
the mazurka, are risible. 

I think it important that the 
Royal Ballet preserve the 
classics in something like ihe 
form in which they were re- 
ceived from Sergueyev. but they 
must also he kept alive— in just 
the way the Wright /Samson 
Strait Lake Tor the Sadler's Wells 
troupe is alive in drama and 
dance — for audiences as well as 
for artists, and not paraded like 
monstrances containing the 
sacred relics of the Marvin sky. 

It is into this unpromising 
situation that Briony Brind 
stepped on Friday night os 
Odeiie-Odile. Miss Brind. young 
and extremely gifted, made her 
debut in Swcv. Lake to great 
excitement last .season. She 
hrings a physique of slim lines, 
expansive limns and an already 
gleaming technique, to the 
double role. From her first 
arrowy appearance at the lake- 
side. we know that we are m 
ihe presence of an Odette; her 
fluidity of movement and tilt* un- 
furling of her line (with Derek 
Deane a nnhle and accomplished 
Siegfried! are an immediate jnd 
vivid pleasure. 

Miss Bnnd's interpretation 
offers real rewards in her 
natural physical distinction — 
there was a moment when she 
stood alone and gently raised 
her arms around her head which 
took my brc.it h away — without 
much sense of the inner life of 
the role. She was giving us ,« 
vocalise rather th.iu a dramatic 
ana. Her Odik*. amused and 
contemptuous of Siegfncd. was 
marked by the same hnght plea- 
sures in her dancing, and by a 
certain lack of temperament. I 
do not advocate vamptsh ram- 
paging. and the product <an offers 
JiltJe enough help to an jrtisr 
wanting to deploy feeling as well 
as line, but here as m the lake- 
side acts 1 sensed a need Tor 
coaching from a great ballerina 
to illuminate the possibilities of 
the ballet and to provide guid- 
ance in technical matiers which 
still bother Miss Brind. 

There is a sense of virginal 
blankness about many interpre- 
tations of the classics by Royal 
Ballet artists, which comes from 
Ihe company's rejection of the 
help that can be given by 
dancers of a previous genera- 
tion. t Kirov and Bolshoy 
ballerinas, prepared by Semyo- 
nova. Ulanova. Dudinskayn. 
make debuts in which they are 
armed and inspired by their 
teachers' greatness I noted 
with despair tJiat when Giselle 
was restaged here two years 
ago. the guidance of Alicia 
Markover. suhlimc interpreter, 
was nowhere apparent. 

CLEMENT CRISP 


Wigmore Hall 


Orchestre de Paris by DOMINIC GILL 


Ludmilla Andrew 


It is still too early to assess 
the success of the new Barbican 
Hall as a concert-place or its 
impact on London’s musical 
life. Some of the signs are 
promising: others are much less 
so. The VIP airport-lounge 
ambience of the Centre has its 
pleasing features — not least the 
woodblock floors, the variety of 
warm colours, and the general 
sense of spaciousness. More 
experience of different seats, 
and different ensembles, in the 
concert hall itself will be needed 
before reliable pronouncements 
can be made en the (at best 
highly subjective) subject of 
acoustic: first impressions are 
of a - clean, warm sound, ex- 
ceptionally clear, from the first 
tier only a Httle distant, lacking 
in presence. The seats, by any 
standards, are very comfortable 
indeed. 

All the same, serious worries, 
persist. Will, the pedestrian 
approach to the Centre from the 
nearest Underground station, at 
present one of-the most hideous 
thoroughfares of London, a 


KINGS HEAD. 226 19181 Dnr 7. . Show 
8. IN PRAISE OF LOVE by Terence 
Rattigan. — 


bleak neon-lit concrete tunnel 
named, with almost unbeliev- 
able inexactitude. Beech Street, 
ever be transformed into some- 
thing less profoundly uninvit- 
ing? More important, will the 
Centre have any coherent 
musical policy during the nine 
long months, of the year when 
the LSO is not resident? Will 
the Centre develop impetus as a 
real cultural dynamo, or will it 
be content to remain a smart 
pendant of the City — dependent 
entirely on corporate money, a 
place to entertain friends and 
business associates, without risk 
of shock or controversy, to 
bland and undemanding 
cultural fare? 

The concert programmes of 
the Barbican Hall for March 
and April,' the first two months 
of its life, are hardly reassur- 
ing: the blandest and most pre- 
dictable diet of standard 
repertory classics stirred up 
with safe “popular" offerings, 
an evening with The Spinners, a 
Johann Strauss gala. Dorothy 
Squires, Chris Barber, Eric 
Sykes and friends. Friends 


PICCADILLY. 
Group, Mica 
Prestol OKB K 
Mat Wed I.t 


indeed: no unfamiliar turns or 
uncharted paths to discomfit the 
Barbican visitor here. A&d 
needless to say, no niche at all 
amongst such comfortable 
opulence, in any concert pro- 
gramme during ihe whole of the 
two months, for one single new 
or experimental work. 

This comfortable emphasis 
was very much in evidence on 
Saturday night for the visit of 
the Orchestre de Paris, the first 
of any foreign orchestra to the 
Barbican, three years in the 
planning, and sponsored by the 
Bauque Nationale de Paris. The 
name of the bank appeared on 
the foyer television screens, not 
unaptly, in a larger typeface 
than that of the orchestra. The 
whole of the centre block of 
the tier was occupied by black- 
tied and evening-gowned guests 
of the sponsors, who gathered 
for invited drinks in the 
interval, and afterwards 
upstairs for dinner. Distinctions 
between artistic enterprise and 
publicity exercise, never per- 
fectly clear even at the most 
discreetly sponsored occasions, 


LONDON PALLADIUM. 01-437 7373. 
MICHAEL CRAWFORD Id tfca Broadway 
Musical BARNUM. Evox 7 JO. Mai Wad 
and Sat 2LA5 Usa too Barnaul Hotline 
01-437 2053. 01-734 8961 far instant 
credit card reservations. 


SHAKE5PEAI 
Ruseirs nev 
RSC also -at 


CRITERION, h 930 3216. CC 379 6565. 
Grp bit OS 836 3962. _ Mpn-Tfturj i 7 .30. 
Frf and sat 6. and 0.45. DARIO FO 5 
COMEDY CANT. FAY? WONT PAY! , 




DRURY LANF J^catfe RgraLCC EIM 
8106. THE PIRATES OF PEKZAHCL 
Opens here Mav 26. Box office now open. 

DUCHESS, a and CC. 636 8243. Eves 6. 
Wed 3. Sat 5.30 and 8.30. RICHARD 
Todd, Dc*t#p Nes bitt and Carole 
Mowlam In THE TOSINESS OF MURDbR. 

DUKE OF YORK'S. 8M i 5122. CC 636 
9837. Group sales 379 6061 . Evas 
7,45, I* prte* mat Thors, Sat 5 A 
a.l S. Special offer until Sat £7.50 
best seats only S£jf 6M 2we«ks atagd 
foot Sat ev»). Shnon Cal low _ A Patrick 


LYRIC HAMMERSMITH. S. CC. 01-741. 
2311. Evat 7.30. Tiiur Mat 230 Sat 
4.30 6 8. IS NOISES OFF- by Michael 

LYRIC STUDIO From TomsrEves 8 pm 

roSet 7 fTi§L U JAMER wtc* * 

MAYFAIR. 629 3036. CC 379 6565. 
Opera 25 Ma-.h. Now bkg BOOGIE 
a MralcaL - 




NATIONAL THiATKC. 'S' 928 2252. 
OLIVIER (open stage) Ton t 7.15 few 
price pier] Tomor 7.00 flow price 
openlno) GUYS AND DOLLS a mutlal 


thHSbirt In J-' DonlaavV* BALTHAZAR oDtnlnaJ GUYS AND DOLLS a minted 


< w5d , S K Sat C 5 MB 

YEAR OF ThV LONGeST-RUNNING 
COMEDY IN ifle WORLD. _N0 SEX 
PLEASE — WE'RE WMLDIjM 
Allen Davit. Croup calos Box mice sn 
6061. Credit coid bookings 9aO 07-1. 

fil.ftlffi, s CC 437 1592. 439 6770-6779. 

Sat 6 0 A 8 AS. Group sales Be* OlR» 
379 6061. 

ffizip * gi lag * Woo * wtf 

In Sartre's THEA5SAHHN- 

HAYMARKKL JPSSil? 1 WrtzS&Sil 4.0® 

CHOICE: A Brtabou" 

Directed 6Y Ronald Eyre. 


corns LOE tamaU aadltOriunj— low wife 
tins) Ton't Tomer 7.30 SUMMER new 

S? JKk.^urlS^lS 2033. (Ml 
card bkss 928 5933, 

WT also H HER MAJESTY'S. 


QUEENS. 5 CC 01-734 1 166. Grw 
Sales 01-379 6061. Evenings 8.00. 
Mat Wed 3.00. Sat 5.1 S and 8JSO. 
ANOTHER COUNTRY by . Jollan 
Mitchell. Seats .rom £3.00. 

RAYMOND REV UEBAR.K 01-734 15L3. 
At 70)0. 9.00 ind 11.00 pm. One" 
Suns. PAUL ..RAYMOND presents THE 
FESTIVAL OF EROTICA. 

ROUND HOUSJ. 267 25 64. Lloyd's Bank 
SHAKESPEARE WORKSHOPS. Urt Week 
Tba Tragedies. 11.3D lam to 3^5 (wfth 
lunch break). Presented by the New 
■Shakespeare Co. 

ROUND HOUSE. 267 2564. too Neva 
Theatre Co in EDWARD II by Bertolt 
: Brecht- Final week. Ton l Tomor. Buy 
2 tetets for Ihe Pfte* of 1. Evgs. 7.30. 

ROYAL COUR1. S IX. 730 1745 Evas 
B.D- Mat Sat 4.0. Mon 4 Sat Mat ill 


VAUDEVILLE. CC. 01-836 99BB Eves 
8. Wed mats 2.45 Sats S «*■ 
GORDON JACKSON In AGATHA 
CHRISTIE'5 CARDS ON THE TABI . 



seats £2. 
by G. 77 


OPERATION BAD APPLE 
Newman, 



WAREHOUSE. Dun mar Theatre. Earn am 
St- Cuvant Gdn Box Office 636 680B. 
ROYAL SHAKESPEARE COMPANY 
GOOD bv. C. P. Taylor toi^t 7.30 nm. 
Final perfe YlMON OF ATHENS from 
IQ March. 


WESTMINSTER. THEATRE. 634 0285. 
Until March 27. Mats daily 2.15. Seag 
£3-50, £2.50. J. B. PRIESTLEY'S 

Myiary Thrill r AN INSPECTOR CALLS. 


HER MAJESTY-5 930 660^. NEVT ^N^ MDS^ONE MDJ 

4025-6- CIMLAY AMADEUS 01-379 6061. R,B “ 


PHOENIX THEATRE (Otarhm Cro« Roadi 
01-036 2294-6611- Eves 6.0, FH A Sat 
6 .0 4 9 .CLONE MO' TIME.' THE GREAT 
NEW ORLEANS MUSICAL! ONE MD 
TIME IS A GOOD TIMEJ .Group _ life. 


SAVOY. S 01-836 8888- CC 930 0731. 
1 vis 3 -00, Mb' Thun 3.00. Sat 6-00 
and 8.45. SIMON WARD. BARBARA 
MURRAY. CLIFFORD ROSE In FRANCIS 
DURBRIDGEV Hif Tbrrtfar HOUSE 
GUCSr. LAST 3 WEEKS ENDS 
MARCH 37. 



SfASUttfim. 1 ’west 'w fbter 

HALL. 


ST. MARTIN* -X8« 1443. EvgS 8 00 YOUNG^ V.C^tar.CffJ. £28 B^ETCS 

AMtha i4 |hrWrt^E S - 0 Mo5%r8S: Wiliams in MASQUERADE Mrak.1 In 

World's [mgect-mr run. 30th Yci« th* Miiunp. 


were more than usually 
blurred. 

The concert itself was un- 
special. Daniel Barenboim has 
worked wonders technically with 
the corporate sense of the 
Orchestre de Paris since becom- 
ing its Artistic Director seven 
years ago; but evidently it needs 
a greater conductor than he to 
inspire and transform what have 
been for as long as I can re- 
member its fundamental weak- 
nesses — -wooden rhythm and dull 
sound. In most other respects 
the Paris Orchestra’s account of 
Beethoven’s eighth symphony in 
the first half of their programme 
was vigorous and alert: and 
there was zest and commitment 
to their performance of Berlioz’s 
Symphonic fantastique after the 
interval, but foursquare 
rhythms, without gut or spring, 
clipped the wings of the Eighth; 
and the textures of the Sym- 
phonic, its web of inner voices, 
flashing lights, for all the 
quantity of energy directed to 
the score, was colourless, with- 
out vibrant life. 

F.T. CROSSWORD 
PUZZLE No. 4,816 

ACROSS 

1 Arrive in hurry (4, 5) 

6 Standard minimum for a 
degree — so it is stated (5) 

9 Future for instance c*uld be 
strained (5) 

10 Try in a letter to produce 
irritability (9) 

11 Bridge command, difficult, 
however, to a bird (4, 6) 

12 Spring sound (4) 

14 Page with vulgar line 
associated with Mrs Grundy 
(7) 

15 Note drink taken with 
favourite cake (7) 

17 Cockney bird ready fer 
table heard to give in charge 
(7) 

19 Drop off when losing 6-1 
(3. 4) 

20 Stage set heard and under- 
stood (4) 

22 Boards get daughter to admit 
deposits (6, 4) 

25 Act not brand to be free 
(4, 5) 

2$ Select part of the Spanish 
tie-break (5) 

27 County bowler (5) 

28 Working independently for 
small National Health 
surgery? (4, 5) • 

DOWN 

1 Win round (5) 

2 What young person might 
wear— diamonds far instance 
(S, 4) 

3 Find a mean welcome to 
storm published (7, 3) 


Until recently, this CanadVm 
soprano has been better known 
as Mil-la Andrew; but she has 
chosen to bring her Russian 
parentage to the fore — and it 
isn’t, after all, so drastic a re- 
naming as Stephen Bishop- 
Kovacevich's. Her recital on 
Friday was all-Russian, and it 
proved to be a treasury of 
happy finds. That indeed was 
its overriding attraction, for 
Miss Andrew's vocal estate was 
in uncertain condition at first 
(the usual difficulties with 
reducing an operatic instru- 
ment to recital-scale, probably) 
— Imperfect pitch, a hard- 
edged top. some inflexibility. 
Her sympathetic accompanist, 
Geoffrey Parsons, had had many 
unfamiliar songs to learn, and 
the pianistic demands of 
Medtner and Balakirev were 
only partly fulfilled. 

By the second half of her pro- 
gramme. starting with her 
Chaikovsky group. Miss Andrew 
was in delightful form. She 
drew upon reserves of melting 
tone for those songs, found lilt 
and verve for three pretty 
Arensky pieces (including a 
taking waltz-song in Arensky's 
best parlour-style) and offered 


vivid snapshots of two Mussorg- 
sky character-numbers. ** Gather- 
ing Mushrooms" and the jocu- 
larly scathing " Hopak." By 
comparison the Rakhmaninov 
group that began the evening 
had sounded suitably grand but 
stiff, and raw in detail. Better 
singing in Gretchaninov had not 
persuaded one that his pair of 
songs amounted tu more than 
dully transcribed " Russian " 
sentiment. 

The real discoveries of the 
recital were Medtner and Bala- 
kirev. Of Medtner we had ihe 
near-impressionist “ Noon," a 
mock-Spanish “ Serenade " and 
a brilliant "Butterfly" with 
Twofe perpetao for the piano: 
highly polished music, taxing to 
perform but thoroughly attrac- 
tive. Balakirev's more idiosyn- 
cratic products — two love songs 
on gravely impassioned daniir- 
rhylhms and the marvellous 
little “ Song of the Golden 
Fish ”■ — were tuo tentatively 
shaped here, but survived with 
credit. Miss Andrew is 
excellently equipped to explore 
this rewarding, neglected reper- 
toire: other singers might 
profitably take a cue from her. 

DAVID MURRAY 



4 Linger longer than striking 
support (7) 

5 Vapour thrice caught from 
the stomach (7) 

6 Temptation to tease (4) 

7 Is upsetting weman in riddle 
(5) 

3 Players- reveal place in 
Derbyshire (9) 

13 For the best fair also (4, 2, 
4) 

14 Fastening papers given to 
boss (5, 4) 

16 Step up supporting resolu- 
tion (9) 

18 Censure detail (4, 3) 


19 Frank is wrong about round 
church (7) 

21 Unholy nuisance beheaded 
in mistake (5) 

23 Eastern Mediterranean 
resort about to reveal 
relative (5) 

24 Direction to deposit by 
butcher (4) 


The solution to last 
Saturday's prize puzzle will 
be published with names of 
winners next Saturday. 




.1 .. . . .'JL-.- 


• . ; 7,_ /otfj • /. ■* . • ■„ v .' 


Financial Times Monday March 'S', 


HNANCmilMES 

BRACKEN HOUSE,; CANNON STREET, LONDON EC4P 4BY 
Telegrams: Finantlmo, London PS4.Telex: 8954871 
Telephone: 01-248 8000 ■ 


Monday March S 1982 


Overkill on 

tax avoidance 


IN THE world of imernatiun.il 
finance, the dividing line 
between prudent commercial 
behaviour and tax avoidance is 
fuzzy to non-existent. So it has 
taken company boards the best 
pan of three months to wake 
up to the fact that the Inland 
Revenue's proposed rules to 
curb international ia.\ avoidance 
could hit normal operations as 
well as those contrived activities 
aaginst which it is specifically 
aimed. 

The Revenue's concern about 
tax avoidance is clearly justifi- 
able. Since exchange conlroLs 
were lifted in 1979 billions of 
pounds have left the UK. and 
not a few of them have prob- 
ably been lodged in one tax 
haven or another where interest 
can be accumulaid tax-free. To 
the extent that UK residents 
would otherwise have retained 
these funds at home, that repre- 
sents a straight loss of luxation 
on unearned income to The 
exchequer. 

Not confident 

Identifying the problem is 
one thing, dealing with it effec- 
tively is quite another. The 
legislation proposed represents 
a major change in the taxation 
of UK companies. Not only have 
long standing and internation- 
ally accepted rules on residence 
been overturned in favour of 
an untested formula, but the 
UK is starting down the U.S. 
route of taxing its residents' 
businesses wherever they may 
be. These two changes alone 
have major implications for 
commercial practice. 

Even by incorporating 
changes of this magnitude, the 
Revenue has not felt confident 
of its ability to curb avoidance 
by hard and fast rules. The 
proposed legislation relies 
ultimately on administrative 
discretion. It is drawn so 
tightly that a whole range of 
reputable companies will be 
forced to use the escape clause 
based on their motivation. Inter- 
pretation of that *'ill depend 
on administrative practice for 
years before test cases in the 
courts provide a legal frame- 
work. 

There is a genuine conun- 
drum here. The Revenue prob- 
ably does need powers as wide- 
ranging as this to cope effec- 
tively with avoidance. To deal 
with even- specific device piece- 
meal in legislation would be 
counter-productive — in the 
Revenue’s domestic avoidance 


department there is an off-the- 
cuff estimate that each clause 
legislated to block a loophole 
spawns two fresh avoidance 
schemes. The trouble is that 
companies want and require 
certainty for the purposes 
planning their tax affairs, and 
they are wary of Revenue dis 
cretion and goodwill. If the 
price of curbing international 
tax avoidance is an arbitrary 
UK .tax system, could the price 
be too high? 

Implications 

There is a respectable argu 
mem to be made for not even 
trying to track down so called 
international tax avoiders. The 
. whole problem arises because 
the taxing authority is ambi- 
tious enough to want to tax the 
earnings of residents whereever 
they arise. But many countries 
only attempt to tax those profits 
that arise within their own 
territorial jurisdiction. As far 
as . the company sector is con- 
cerned this would appear to 
make a good deal of sense lor 
the UK. especially as the yield 
of corporation lax is anyway 
relatively low. 

Such a change of approach 
would, of course, have major 
implications; but the Revenue’s 
own proposed changes are just 
os fundamental. They require 
extremely careful consideration 
— which they, will ccriatnly not 
have received if the Chancellor 
introduces them with the Budget 
tomorrow as planned. The final 
deadline for submissions was 
February’ 26; it would be a 
mockery of the process of con- 
sultation if 11 days later he 
announced that, in spire of all 
the objections, the legislation 
would be brought in. 

Makes sense 

There is an obvious context 
in which the proposals can be 
considered at greater leisure 
Last month the Revenue- pub- 
lished a Green Paper on the 
structure of corporation tax. in 
which every option foi change 
was considered. Reactions are 
requested by the end of Septem- 
ber. So it would make sense to 
consider how the rules on com 
pany residence et al might be 
changed in tanderu with this 
opera lion. Moreover, since the 
cost to the Exchequer of inter- 
national tax avoidance has not 
been, and probably cannot be, 
established, the price of procras 
lination need not, in ihis case, 
become a political issue. 


A frank friend 
of Israel 


THE STATE visit which Presi- 
dent Mitterrand of France has 
just paid to Israel may not have 
brought a solution to the Arab* 
Israeli conflict any closer; but 
the straight talking that went 
on between M Mitterrand and 
his Israeli hosts cannot fail to 
yield some benefits in the 
longer run. Too often, in the 
case oF delicate diplomatic 
exercises of this kind, the 
visitor is so carefal not to offend 
bis hosts, that disagreements 
arc skated over, only to re- 
emerge later. That the sharp 
differences between France and 
Israel over the future of the 
Palestinian people were aired 
publicly in a speech by M 
Mitterrand to the Knesset with- 
out causing a diplomatic inci- 
dent was a considerable achieve- 
ment. 

No doubt M Mitterrand was 
helped in his task by the fact 
that he has always shows him- 
self to be a warm friend oF the 
Jewish people, many of whom 
have played a prominent part 
in the French Socialist move- 
ment, and a staunch defender 
nf Israel's right to exist. His 
hosts were certainly also aware 
that, in paying a visit to Israel 
at all, the French President 
laid himself open to the 
hostility of the Arab world, 
influenced more by til? symbolic 
nature of his gesture than by 
the contents of his statements. 
Given France’s heavy reliance 
on oil imports from the Arab 
countries and the large amount 
of trade it -does with them. M 
Mitterrand was taking s big 
diplomatic risk in visiting Israel. 

Though M Mitterrand’s 
declaration to the Israeli Parlia- 
ment on the Palestinians' rights 
provoked the ire of Mr 
Menahem Begin, the Israeli 
Prime Minister, its basic policy 
options could hardly have come 
as a surprise. France and its 
European partners have long 
been on record as supporting 
the Palestinian people’s right to 
self-determination and a home- 
land. If M Mitterrand wont a 
little further than usual in fore- 
shadowing the eventual estab- 
lishment of a Palestinian 
“state." this is no more than 
a more precise formulation of 
what most European govern- 
ments consider to he the 
inevitable, outcome of. self- 
determination. 


■gin’s strong objections 
rest ion of a Palestinian 
whose sole objective 
>e the destruction of 


Israel." were entirely predict- 
able. But they should not be 
allowed to obscure the fact that 
. M Mitterrand made a number 
of points in his Knesset speech 
which must have pleased the 
Israelis. 

The French President empha- 
sised that only those directly 
involved in the Arab-Israeli 
conflict should negotiate a 
settlement, rhus ruling out any 
solution imposed by outside 
powers, which the Israelis have 
always feared like the plague. 
Equally important fur the 
Israelis was M Mitterrand's 
statement implying that UN 
resolution 242, calling for the 
withdrawal of Israel from all 
occupied Arab territories, 
should not rule out possible 
frontier modifications, negoti 
ated by the states involved. 

M Mitterrand has thus carried 
out his pledge that during his 
visit to Israel he would set out 
honestly his government’s posi- 
tion on the Middle East crisis, 
without fear of criticism from 
either side. That will un- 
doubtedly gain him a certain 
amount of respect in the region. 
One of the main weaknesses of 
his position, however, is that he 
is speaking for France alone 
and no longer for the European 
Community & a whole. 

If any doubts remained after 
the remarks by M Claude 
Cheysson. the French Foreign 
Minister, in December last year, 
that France no longer supported 
the European peace initiative 
embodied in the 1980 Venice 
declaration, they have been 
dispelled by M Mitterrand. 

Realistic 

In his Knesset speech, the 
French President stressed that 
he considered a step-by-step 
approach, such as the one pro- 
vided by the Camp David agree- 
ments. to be a more realistic 
method of reaching a peace 
settlement than " global ” nego- 
tiations— at least for the 
moment 

That may well be true. But 
it should not be beyond the 
ingenuity of the Ten - to devise 
a common position which 
takes account of these views, 
while retaining the basic 
principles of the Venice declara- 
tion to which all Community 
members subscribe. The danger 
is that the Camp David process 
may not survive the Israeli 
withdrawal from the Sinai next 
month. In that case, it would be 
sad indeed if the European 
Community did not have an 
alternative plan up its sleeve. 


WRESTLING WITH RECESSION— 1 


The upturn that hasn’t 



CONTRARY TO most expecta- 
tions. Mrs Margaret Thatcher 
may be on the brink of recoup- 
ing at least some of the ground 
which she and her Government 
have lost in the heartlands of 
British industry over the past 
three years. 

On the eve of the Budget 
most of the companies inter- 
viewed IS months ago in the 
FT*s series on The recession 
accept that they are now 
“ leaner and fitter ’’ than they 
were then. But this tentative 
change of heart about the 
Government owes nothing to any 
initiatives by either Mrs 
Thatcher or Sir Geoffrey Howe, 
the Chancellor of the Exchequer. 

There are two reasons for it. 
First there is a growing accept- 
ance of the influence of inter- 
national factors which came 
home to most companies with 
last autumn's damaging jump in 
interest rates. The Government 
is not generally blamed for 
these, now that the initial shock 
has worn off. 

Second, most companies 
accept the good that has 
been done to those which 
have survived the past 
two years. But there remains 
deep concern about unemploy- 
ment and about The number of 
companies which have been hit. 
Companies worry about what 
they may have to do if the 
economy does not pick up by 
mid to late summer — and about 
the imports which may flood in 
if it does. 

Between them the 15 com- 
panies — none of which has gone 
bust — have shed some 53.000 
jobs in The UK out of a 1979-80 
total of 240,000. GKN dominates 
these figures, haring shed some 
21.000 out of 69.000. At the 
other end of the scale Digico 
of Hertfordshire, a sreadily 
growing small computer com- 
pany. lost no-one and still 
employs about 190 people. And 
Dale Electric, a specialist 
engineering company in York- 
shire. shed only 65 of its 1,030 
employees and is by far the 
most bullish of the group. 

Most of the companies admit 
that Mrs Thatcher was right to 


KENWOOD 


‘. . . If not, then 
God help 
the country’ 

KENWOOD'S hopes of a 
steady recovery were dashed 
when interest rales and mort- 
gages suddenly rose last 
autumn, leaving people with 
little spare cash to spend on 
its rood mixers and other 
domestic appliances. 

With no prospect of an 
early boost to home demand, 
it is now relying on increased 
exports to tide it over till 
the late summer when it 
hopes seasonal demand will 
pick up as it used to. 

Immediately after the in- 
terest rate rise the company 
had to lay off the 72 extra 
workers it had taken on at 
its Havant. Hampshire, fac- 


force them to mend their ways 
much faster than they would 
hare done otherwise. But almost 
all are working 30 to 50 per 
cent or more below capacity 
and want the chance to cash 
in on productivity sains and 
avoid further disaster 

“ We are glad we have done 
all this and our shareholders 
ought to be, too " says Mr Alan 
Wagstaff. chairman of Tootal, 
whose UK labour force has 
shrunk from 17,000 to 9.500 in 
two years as the company has 
hacked away at its loss-making 
textile operations, desperately- 
seeking for the core businesses 
on which it could survive. 

“ We’ve given our employees 
a hell of a time but there’s no 
future in business for haemor- 
rhaging loss- makers." Haring 
stopped most of its traditional 
textile operations like general 
spinning, weaving, finishing 
and printing in what 
is called a "segmental 
retreat.” Tuotal has found its 
UK base in thread, clothing, and 
textiles, says Mr Wagstaff. 
But seeing no sign of an 
upturn, he warns: “ Pushed any 
further, we could suffer serious 
damage.” 

Another company which has 
been cutting back, searching 
for a permanently profitable 
base within the special steels 
industry, is Johnson and Firth 
Brown. It is still looking for 
savings, having shed 3.090 of 
its 14.000 workforce and warns 
that. "What has been gained 
may be chucked away if we 
have to pull out of any more 
things just to survive.*' 

But Mr George Hardie, 
finance director, still says; " In 
the long run it should have 
been worthwhile — we did seem 
to be dying a slow death 
before.” 

However, not everyone is so 
sure. Mr Edgar Watts is finance 
director of Jones and Shipman, 
a small, proud Leicester-based 
machine tool maker, which still 
sees no sign of recovery after 
cutting back its 1,550 workforce 
by 400. "We’ve had a rough 
deal.” he says. “ Obviously 
we've cleared some fat gained 


In autumn 1980 an FT 
series, Wrestling with 
Recession, described the 
problems of 15 British 
companies. John Elliott, 
Industrial Editor, has 
revisited them and 
talked to chairmen and 
senior directors. Here 
he sums up their 
experience and (below) 
looks in detail at two 
contrasting stories. 



when our orders were good. But 
if you gave me the option of 
going back and carrying on as 
we were in 1979, we’d choose 
that option." 

Both. Wedgwood and Ken- 
wood (part of Thorn EMI) also 
resent the pressures they have 
suffered. Wedgwood has closed 
three factories and cut its 8.000 
workforce by some 2,000. Mr 
Peter Williams, its deputy 
chairman, says: “We have been 
forced into a more rapid con- 
centration of our production. 
But its been a very hard way 
to achieve a limited objective.” 

Kenwood's workforce is down 
by 430 to 950 and the company 
has had the shock of seeing a 
slight recovery last summer 
demolished' by the autumn’s 
higher mortgage and interest 
rates, causing fresh redund- 
ancies. Mr Keith Miller, chair- 
man of Thorn Domestic Appli- 
ances. says: "We just hope that 
somewhere along the line 
Thatcher expects to get 
re-elected and acts accordingly." 

There is also deep resentment 
about the way the Government 
is continuing to allow energy 
prices, rates and other public 
sector costs to undu some of the 
gains made by the private 
sector. Mr Miller says Kenwood 
had to bear increases in public 
sector prices averaging 15 per 
cent last year while’ private 
sector suppliers raised their 



to ry, believing that, having 
trimmed back on non- 
essentials earlier in the year, 
better times were arriving. 

“But that light at the end 
of the tunnel seemed to 
become the light of an on- 
coming train, and It is almost 
as If we were' heading into 
a second recession," says Mr 
Keith Miller, chairman of 
Thorn Domestic Appliances, 
which owns Kenwood. 

Its main problems started 
in 1979-80 and continued into 
last year with the high value 
of sterling, high interest rates. 
an<l a general collapse of 
home and overseas demand. 
In particular, the pound was 
strong against its best Euro- 
pean markets. A link-up with 
Sharp in Japan produced 
disappointing export results. 

But its early cutbacks stood 
it in good stead through the 
first half of 1981. 


“We hacked away at. 
indirect staff like sales sup- 
port people, servicing over- 
heads, warehousing and distri- 
bution and transport. We have 
taken these steps hoping we 
have kept the essential fabric 
OK by not cutting seedcora 
expenditure on sales, engineer- 
ing design and development.” 
Plans for three new products 
to be launched in the next 
18 months have not been 
abandoned. 

Kenwood’s own stocks of 
finished goods have been 
reduced by one-third and 
srocks in shops are also at 
record low levels, vfliich 
means fresh ‘ orders shonld 
feed directly and quickly onto 
Kenwood's under-utilised fac- 
tory floor. If they do not do 
so at the end of the summer 
“ it won’t be a case of God 
help us, but God help the 
country," says Mr Miller. 


prices only by 5 per cent. This 
year prices are estimated to. go 
up 12 per cent in the. 'public 
sector (more if steel prices rise 
sharply) and 7 per cent in the 
private sector. 

Mr Jonathan Geetetner, joint 
chairman of Gestetner, has . 
figures, at his finger tips to show 
that his company this year, is 
paying £lm basic rates to 
Haringey Borough Council for 
its main London factory* propor- 
tionately three times as much 
as it pays for industrial 
premises in 'Wellingborough, 
Northants. 

Many of the changes intro- 
duced by companies were 
started before the recession and 
have been hastened by it- GKN, 
for example, has completed a 
strategic reorganisation, build- 
ing up its automotive compon- 
ents. industrial services and 
distribution businesses at the 
expense of steel, nuts, and bolts. 
But the recession compounded 
the effects leading to a Novem- 
ber 1980 peak of 24,000 people 
on short-time, working two or 
three days a week, in addition 
to its massive redundancies. In 
1980-31 this contributed to £50m 
redundancy and closure costs. 
GKN still has approaching 2.000 
on short time, unlike most of 
the other companies which are 
generally back to full-time work- 
ing (apart from Jones and 
Shipman which has been on a 


DALE ELECTRIC 


No frills in 
the drive 
for exports 

LIKE ONE or two. other 
companies among the !5‘ 
which could afford to do so. 
Dale Electric of Yorkshire 
has expanded abroad and 
maintained its expenditure 
on sales and innovation 
during the past two years, 

*' Recession was ' our 
enemy. Wc-wdrked our way 
out of it by cutting out frills 
and fancy administration, 
getting out into the market 
and getting our supply prices 
right" says Mr Leonard 
Dale, the 65-year-old founder 
and chairman of the 1,000- 
employee company. 

Now Dale has a record 
order book totalling £32m 


four-day week for a year an* 
expects that to continue until 
September). 

GKN has been expanding 
abroad while cutting back in the 
UK. Its capital investment pro- 
gramme has been, maintained at 
about f 90m a year but the UK 
share has fallen from 90 to 65- 
per cent in the past two or 
three years and is now going 
down to 50 per cent where it 
will probably stay. 

Northern Engineering Indus- 
tries has also expanded abroad 
(notably buying Extel in the 
U.S. to broaden its technology 
base),, while shedding some 
5,000 UK workers in two years. 
Daie (see - below} has also 
broadened its base with foreign 
investments. 

But, with a weaker, industrial 
base, Tooted has pulled back as 
welL While buying - two busi- 
nesses m the U.S., it has also 
sold a. loss-making UB. 
stores group — Ups *n Downs. 
Now it is trying to sell an 
Australian textile investment, 
Bradmill Industries, for £23m 
— partly because it J?as found 
the. investment of little direct 
benefit and partly to raise cash 
that will .reduce its UK gearing 
by 23 points. (Gearing problems 
have also caused Johnson and 
Firth Brown to sell some UK 
companies, yielding about £12m 
so far, which. 4s needed to fund 
the eventual business upturn.) 

Exports have become : increas- 
ingly important to virtually ail 
the companies. Bat while there 
have been some notable propor- 
tionate increases compared to 
UK sales, actual volumes have 
quite often dropped. And. as 
is well known, export orders 
have been accepted fn many 
companies at minimal profit 
margins just to keep operations 
ticking over— -sometimes as low 
as 2*or 3 per cent on turnover. 
In general, in fact, companies’ 
aspirations on overall profita- 
bility have been dramatically 
and - permanently reduced. 

Pay rises have generally 
fallen from 9 to 10 per cent to 
5 to 6 per cent in the past year 
and there is widespread praise 


for the co-operation of workers 
and trade unions. There are 
serious fears that deep-seated 
trade union restrictive practices 
will one day be fought for all 
over again and that there may 
soon be pay revolts from 
workers who are tired of losing 
out on tiring standards to the 
public sector. ' 

Now industrialists hope that 
international factors will im- 
prove sufficiently to enable the 
economy slowly to pick up in the 
second half of the year without 
being hampered by the false 
starts of iflSl-rolhcrwise there 
will be more substantial .cut- 
backs. 

Recent cuts in oil prices are 
regarded as encouraging, but 
most businessmen would also 
like the more permanent benefit 
of a reduction in the National 
Insurance Surcharge- Substan- 
tial cuts in energy costs would 
equally please some businesses 
like Johnson and Firth Brown. 
Others. like GKN, favour the 
authorisation of public projects 
like new roads and by-passes 
which would slowly feed into the 
economy while companies . such 
as Kenwood, which are nearer 
to the consumer, plump for 
income tax cuts. 

Above all. businessmen want 
to hear tomorrow of measures 
that will indicate hopes of a 
revival. ” I'm not talking myself 
into false hopes. The recession 
has shaken us up and tha I’s good 
but I’jn worried about the per- 
sistence and length of it. 1 ’ says 
Mr John Young, managing, 
director of the 1Veir Group, 
which needs orders urgently. 

Sir Geoffrey has it. in his 
power to encourage that confi- 
dence. Then industrialists will 
lose their past resentment even 
faster because, as Mr Philip 
Ling, general manager of John- 
son and Firth Brown said of the 
Government’s policies m Sep- 
tember 1980; "It’s like having 
an operation without an anaes- 
thetic. If it saves your life you 
will be grateful later, but while 
it’s going on you scream like 
hell.’* 



stretching 12 to 18 months 
ahead, which is i good time- 
span for its type of business 
—manufacturing' generating 
sets and aerospace ground 
power -equipment 

Some £2fim — about 80 per 
cent — is for export which is 
a ' much ’higher ’“proportion 
than the 50 per cent recorded 
in the late 1970s. 

Having suffered in the past 
from the sudden disappear- 
ance of export markets for 
political reasons. Dale has 
invested £2m abroad for the 
first time to get a broader 
base and beat tariff barriers. 
It bas secured a 49. per cent 
share In a Mexican generating . 
set business and a 70 per cent 
share of a French company. 
Dale also plans a 50-50 joint 
venture in Nigeria. 

At home, seeing a decline 
in small generators, it shut a 


factory in Hull in 1979 once 
almost all the 50 employees 
had round other jobs and con- 
centrated on larger sets in a 
new- factory. Since then, Its 
redundancies number only 
10 to 15. To protect jobs, it 
built standard units worth 
£l.5m for stock in 1981 (slow - 
down \ to £400,000) and 
accepted export orders at tiny 
margins of only 3 to 4 per 
cent on turnover when the 
pound was well above 52. 

It put its Houcbin aerp-' 
space power equipment 
factory on a three-day week 
for four months last year and 
sold a couple of poor 
performers. 

But more was spent on 
advertising and ** getting out 
in our markets’* especially 
. abroad. Production, methods 
were improved to cut labour 
unit costs by 15 per cent over 
10 months. 


Men & Matters 


Space invaders 

One of the reasons that the 
BBC was able to wheel itself 
into the right position at the 
right time to garner the fruits 
of the Government’s sudden 
satellite broadcasting enthusiasm 
is. of course, its centralised 
power structure. I TV is far too 
democratic for quick political 
footwork. The commercial com- 
panies must now realise that 
the Beeb's new technology 
triuraverate — George Howard, 
Aiasdair Milne and Bill Cotton 
— are going to take some 
beating. 

BBC chairman Howard and 
director general designate Milne 
both have formidable reputa- 
tions - as no-nonsense decision 
takers, but Cotton is still some- 
thing of an unknown outside 
the show-biz pages. In fact the 
recent BBC shuffle at the top 
made Cotton — the son of Wakey 
Wakey. Billy — arguably second 
only to Milne in terms of sheer 
BBC executive power (” l think 
we’d prefer the word * in- 
fluence whlsphered my Beeb 
mole). 

Cotton was very much in the 
limelight when the Corporation 
was unveiling its satellite plans 
last week thanks to his new 
job as director of development. 
Thus it is that the 53-year-old 
Cotton not only has the task 
of putting those plans into 
action, but also of scheming the 
Corporation’s ploys in cable-tv 
(it is already involved in one 
experiment) and of supervising 
the changing face of BBC Radio. 

This is only one area of 
the growing Colton empire. He 
also straddles both the Corpora- 
tion's television channels as 
Director of Programmes and at 
the same lime has been made 
chairman of BBC Enterprises, 
a post traditionally held by the 
BBC Finance Director. The 
moves are clearly intended to 
ensure that programme-makers, 
programme-sellers and new 
venture ideas-peopie are work- 
ing towards the same goals. 

Cotton's talents seem to test 
in a knack for guessing public 
taste and an ability to generate 
affection among his staff. While 


he has long had a mutually 
distrustful relationship with the 
critics he would rank high on 
any internal BBC popularify 
poll. 

This may be an asset upon 
which be will bavc to draw 
considerably over the next year 
or so. Between the BBC and 
the new* golden age the dynamic 
trio envisages lies a trecherous 
ocean of politicking and union 
agreements. The BBC talent 
unions are not going to let 
Cotton dip into the barrel of 
past productions to provide 
material for his space stations 
without some at least of the 
benefit coming their way. 


Consuming 

The world of consumerism has 
had the weekend to digest the 
appointment of former child 
psychologist and more latterlv 
Health Minister Dr Gerard 
Vaughan as successor to Sally 
Oppeaheim as Britain's Minister 
of Consumer Affairs, A quick 
sortie among the cord-trousers 
and brown rice brigade revealed 
that Dr Vaughan's arrival is 
viewed with cynical optimism. 

Dr Vaughan’s track record 
suggests that he could be a 
quite outspoken campaigner for 
consumer rights— you should 
read what he used to say about 
the Health Service, but that was 
before he became its Minister, 
of course. The first things he 
should turn his mind to. I am 
assured, include consumer repre? 
semation on the boards of 
nationalised industries and what 
Government is going to do about 
bargain offer advertising. 

The mood of the coming 
relationship between Dr 
Vaughan and his lobbyists 
could be set before the end of 
the month. Within the next 
couple of days the National Con- 
seiner Council will have to 
decide whether Dr Vaughan is 
to be invited to the grass-root 
Consumer Congress to be staged 
in the University of Surrey in 
three weeks time. 'Mrs 
Oppenheim had been asked 
along and said yes. If Dr 
Vaughan is asked, and agrees 



“With all this pre-Budgct 
gloom you won’t have any- 
thing left for p ost-Budget 
depression.” • 


to go, one item on the agenda 
should fascinate him; The 
National Health Service and 
patients’ rights and respon- 
sibilities. 


help. A former Costain Inter- 
national director is supervising 
the conversion of Bow Baths 
into a community centre; a one- 
time divisional director of 
Burmah Industrial Products is 
helping with the marketing of 
Cheshire Foundation goods; and 
an Esso sales manager has gone 
to be appeal director of the 
Gloucestershire Trust for 
Nature Conservation. 

Reach director Nick Grace 
(ex-Mind. ex-Voluntary Service. 
Overseas) finds that while. the 
age of. applicant is. falling, and 
now nudging ominously towards 
the mid-50s, more companies are 
backing the charity.- “They 
know there , is more to redund- 
ancy and retirement than a 
cheque, a golden handshake or 
a farewell dinner.” BP, GEC. 
Marks and Spencer and Unilever 
are among major sponsors. 
Applicants, who usually have a 
pension, get the status of a job 
to go with it; "They still want 
a reason for- getting up in the 
morning.’' . says Grace. *' An 
empty diary is a terrible thing.” 

These days Grace Is getting 
more former teachers on his 
books, and even a few journa- 
lists. There have been “two' 
or three” former ambassadors 
but. be adds wryly, "they are 
most difficult” 


Togetherness 

I bring word of an annual 
report which talks of a boom 
year. The bad news, on '.this 
Monday morning of Budget 
week, is that the boom is due 
to redundancies and growing 
desperation -among the chari- 
ties. The missing link between 
the two is Reach (the Retired 
Executives Action Clearing. 
House) a charity itself whose 
rote it is to put the retired and 
the redundant in touch with 
voluntary bodies which need 
their expertise. 

Last year was only the second 
for Reach, and it has dealt with 
more .than 1,000 applications 
from retired executives looking 
for ftili or part-time voluntary 
work, plus more than 1,200 
requests from voluntary organi- 
sations in need of specialised 


Party line 

Sad news for SDP Supporters 
saving up for their £2.50 a time 
first anniversary celebration 
pany at the "Wembley confer- 
ence centre on the night of the 
Htilend by-election. SDP chiefs 
will -meet today with cancella- 
tion or posrponment very much 
on their minds; Officially the 
line will be that too many 
spokespersons .will be needed 
for TV/radio/pre^s Interviews 
after a Hillhead triumph .for 
the . Wembley shindig to really 
swing. Observer's- book of 
apocryphal proverbs says: Hot 
dancing is very dhficult with 
cold feet. 


Observer 




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49 


Financial Times Monday Maxell 8 1982 


FOREIGN AFFAIRS 


The Trident dilemma 


By Ian Davidson 


IN THE. summer of 1980 the 
British Government announced 
its decision to replace the ageing 
Polaris submarine - launched 
strategic nuclear missile force 
with four new submarines 
equipped with the Trident C4 
missiles now being deployed by 
the U.S. Since then. President 
Reagan has decided to acceler- 
ate the transition to the Trident 
D5 missile, which is larger and 
more accurate and carries sub- 
stantially more warheads, and 
the British Government will 
shortly have to choose whether 
to stick to the earlier plan or to 
follow suit with the Americans. 
Zt is a profoundly uncomfort- 
able choice, and it needs to be 
said at the outset that .there are 
so many arguments against 
either course of action that no 
decision will be satisfactory. 

The arguments against going 
for the Trident D5 are those of 
cost, redundancy and prolifera- 
tion. No-one can know what the 
new system will eventually cost, 
since the Americans are still 
developing it bnt it will inevit- 
ably be much more than the 
£5bn claimed in 1980 for the 
smaller C4 system, and even 
that figure provoked whistles of 
disbelief from the Government’s 
critics. Some guesstimates put 
the D5. figure somewhere be- 
tween £7bn and £10bn. Spread 


Assurances that it 
would be cheap 
the long run’ . 


over a large number of years, 
this cost can be represented as 
a faidy modest proportion of 
the probable defence budget in 
any one year. -Once the capital 
expenditure had been digested, 
the new force might prove as 
cheap to run as the existing 
Polaris force. 

Nevertheless, It is impossible 
to take on trust official assur- 
ances that Trident would be. 
cheap “in the long run.”.- At 
least fltm was spent (secretly) 
on developing mew warheads 
for Polaris, and several hun- 
dred millio n pounds now have 
to be spent on giving the mis- 
siles new motors. It is a safe 
bet that there would be analo- 
gous extra costs during the life 
of the Trident system. Advo- 
cates of . Trident maintain that 
savings secured by going for a 


cheaper system, or even by for- 
going a replacement for Polaris 
altogether, would not be large 
enough to provide any very sub- 
stantial improvement to 
Britain's defence capability; but 
this is a very curious argument 
for -the Minis try of Defence . to 
deploy at a time when it has 
recently been forced to imple- 
ment quite severe defence cuts 
and still cannot keep control 
of cost inflation in defence pro- 
curement. if « spendthrift tells 
you that a Rolls-Royce would 
be cheap in the long rap, you 
count the spoons. 

The question of cost is par- 
ticularly acute because the most 
pressing need for Nalo is to 
strengthen its conventional 
defence capability. Naio’s tac- 
tical nuclear weapons no longer 
provide a counterbalance to 
the growing conventional 
strength, of the Warsaw Pact 
(if they ever did), because they 
are faced with equivalent or 
superior tactical nuclear 
weapons on the other side. Tri- 
dent may only have a marginal 
impact on total defence costs, 
but sooner or later marginal 
erosions lead to significant re- 
ductions in conventional defence 
capability. 

The second argument against 
the D5 is that it is a far more 
powerful system than Britain 
requires. In principle, it will be 
accurate enough to pin-point 
Soviet missiles in their silos, 
and while this ' kind of pre- 
cision may. or may not, have 
some justification in the con- 
text of the vast American 
arsenal, it serves no conceiv- 
able purpose for Britain. A 
British strategic nuclear deter- 
rent could only be fired once; 
the only requirement, therefore, 
is that it must he able to cause 
maximum damage to Russia's 
top-value target — Moscow or a 
similar city. 

The third argument against 
the Da is that the much larger 
number of missiles it is cap- 
able of carrying (up to IS, com- 
pared 'with three on Polaris) 
represents a significant addition 
to the arras race. Not only is 
this undesirable in itself, it is 
particularly inappropriate when 
all western governments are 
urging the two superpowers to 
make real progress in negotiat- 
ing Imitations— if possible, re- 
ductions— in their nuclear 
arsenals. 

The U.S. and 'its Nato allies 
are resisting Soviet, demands 





The Trident C4: a new way ahead' 


that the British and French stra- 
tegic systems should be counted 
in tiie Intermediate-range 
Nuclear Force (INF) negotia- 
tions- in progress in Geneva. 
But if President Reagan comes 
up with proposals for new 
negotiations on strategic 
systems, and if those pro- 
posals are based on the idea 
of deep cuts (as he has fre- 
quently indicated), the prospect 
of a sharp increase in the num- 
ber of British warheads could 
be profoundly embarrassing. 

- Unfortunately, the arguments 
against the C4 are probably at- 
least as telling as those against 
D5. By the time Britain needs 
to fit missiles in its new sub- 
marines, in the early 1990s. 4be 
G4 will have become obsolescent 
in the American arsenal. No 
doubt the missiles would work 
perfectly ..well on installation, 
but the absence of continuing 
overlap between the British and 
U.S. systems makes it rather 


unlikely that the British force 
should be kept operational for 
its planned life of about 30 
years, except at considerable 
cost in maintenance and updat- 
ing. 

Some people have canvassed 
the idea that cruise missiles 
would offer a cheaper alterna- 
tive to a new ballistic missile 
system, but the suggestion is 
open to manifold objections. 
Cruise missiles are cheaper than 
ballistic missiles, but they are 
also much more vulnerable to 
Soviet air defence systems, and 
will no doubt become more vul- 
nerable as the Soviet Union 
gears up to counter the cruise 
missil e danger. To get an 
'equivalent number of war- 
heads to their targets, there- 
fore. would require a much 
larger number of cruise mis- 
siles than of ballistic missiles. 
• Moreover, the most essential 
characteristic of any British 
nudear deterrent is that it must 


be invulnerable to pre-emptive 
attack by the Soviet Union, 
and the most invulnerable 
launch plafonn is a submarine. 
But a much larger number of 
cruise missiles (as argued 
above) would almost certainly 
mean a larger number of sub- 
marines; and' since the sub- 
marines are the most expen- 
sive element in the strategic 
force, a cruise missile deterrent 
in submarines would be more 
expensive than an equivalent 
ballistic missile force. 

- An alternative notion would 
be to distribute unclear cruise 
missiles between a large num- 
ber of existing naval vessels, 
whether surface ships or sub- 
marines. and thus save on the 
cost of building additional sub- 
marines. Such a deployment 
would be more detectable than 
a strategic submarine force; 
but enough of them would be 
survivable if they were very 
numerous and dispersed over a 
wide area. 

There are several objections 
to such a configuration. It is 
easy to imag ine that the 
ordinary tasks of a frigate say, 
could come into conflict with 
the requirements of its role as 
a strategic platform, to the 
detriment of both. Second, 
such a large and widely dis- 
persed strategic force would be 
extremely awkward to control. 
Finally, the implied prolifera- 
tion of missiles would be objec- 
tionable on arms control 
grounds. Placing cruise mis- 
siles on a special fleet of small 
vessels in British coastal waters 
might solve the first two prob- 
lems, but at a price; vulner- 
ability to pre-emptive attack. 

The heart of the dilemma fac- 
ing the UK is not so much the 
choice between the C4 or the D5 
version of Trident, but whether 
Britain should stay in the 
nuclear weapons business at all. 
If the answer is Yes. then it 
would seem that D5 is the least 
bad alternative; but it is not 
obvious that the answer should 
be yes. 

There are two rationales for 
the independent British deter- 
rent The first is that the exis- 
tence of a second decision- 
centre, apart from Washington, 
adds to Moscow’s uncertainty 
and thus enhances deterrence, 
n so, however, we cannot at the 
same time deny that it also gives 
Moscow an additional reason to 
maximise its own nuclear 


Lombard 


A comparison of 
unemployment 


arsenal. 'Die purchase of D5 
with its extra warheads would 
add to an arms race which is 
already creating anxiety. 

The second rationale is that 
we cannot foresee what will be- 
come of the Atlantic Alliance 
10 or 20 years from now; if the 
Americans were ever to revert 
to some version of their more 
traditional posture of autonomy, 
the argument goes, Britain 
would need to be able to defend 
itself. This may be true in 
general; but if 330,000 UJS. sol- 
diers went home the highest 
priority would have to be the 
strengthening of Europe’s con- 
ventional forces. The combina- 
tion of a weaker defence caps- j 
bility on the central front, with ; 
a British deterrent whose only 
function is to protect Britain, is , 
not a happy recipe for strategic 1 
solidarity between the countries 
of Western Europe, and might 
well reinforce neutralist tenden- ' 
cies. 

What makes this issue so 
troublesome is that the broad 
political consensus which used 
to exist — in practice if not in 
theory — on the cheapness if not 
the usefulness, of the indepen- 
dent British deterrent, has now 
disappeared. Any alternative 
government to Mrs Thatcher's 
would almost certainly cancel 
Trident, and a Labour Govern- 


Any alternative 
government 
would cancel 


ment would get out of the 
nuclear weapons business 
altogether. 

One argument put forward 
for choosing the D5 rather 
than the C4 is that it would 
delay the expenditures of large 
amounts of money, and thus 
reduce the costs of cancella- 
tion if Mrs Thatcher were to 
lose the next election. My own, 
reluctant view is that the 
Government should go for 
Trident D5 but at the same 
time state publicly that it would 
be prepared to place all 
Britain’s nuclear weapons on 
the line if the two superpowers 
were to make substantial pro- 
gress in reducing their nuclear 
arsenals across the board. If 
we could give a real impetus to 
arms control, the cancellation 
costs of D5 would be cheap. 


By Samuel Britton 


A MEETING of OECD ministers 
of labour and social affairs last 
weekend had before them an 
interesting Secretariat brief on 
international unemployment ex- 
periences. 

The headline point was that 
unemployment increased in the 
whole OECD from an average 
of 7.6m in the 1960s to 10m 
in 1970-73, to ISm in 1975-80, 
and is estimated to reach 28.5m 
or 8 per cent in 19S2. Some 
16.5m of the total are in 
Europe. 

Consumer price inflation 
doubled from 3 per cent per 
annum in the 1960s to 6 per 
cent in 1971-73, reached a peak 
of 12 to 13 per cent in 
1974-1975 and has since 
fluctuated in the 7 to 13 
per cent range. Thus no simple 
relation emerges between un- 
employment and inflation either 
way; and opinion pollsters who 
ask people questions on the 
assumption that there is are 
performing a disservice. 

The average annual growth of 
output has fallen from 5 per 
cent in 1960-73 to 2 to 2} per 
cent since then. Productivity 
growth, measured by output per 
employee, fell sharply from its 
pre-recession trend of 4 per 
cent but, according to the 
OECD, is now picking up again. 

The OECD estimates that 
output forgone through higher 
unemployment amounted last 
year to $340bn or half the 
French GDP. As a piece of 
arithmetic this is fine; but thus 
stated it gives the impression 
of a loss deliberately incurred 
by governments to fight infla- 
tion— which is, to put It mildly, 
tendentious. 

Although there is talk of 
“ structural rigidities,” nowhere 
does the OECD note say outright 
that the demand for labour is 
related to its cost, and the 
Secretariat is much too tactful 
to talk of “ pricing out of work ’’ 
by either governments or 
unions. Nor is the contribution 
of higher energy costs in mak- 
ing equipment obsolescent and 
thus reducing growth stressed 
at ail But it does emerge that 
oil demand per unit of GDP has 
now fallen by 25 per cent since 
1973, which holds some promise. 

A great difference emerges 
between the two sides of the 
Atlantic. In 1980 unemployment 
rates were the same in the U.S., 
and the UK and France. But 
whereas the average British and 


French worker on the dole had 
been out of a job for nearly 
10 months, his U.S. counterpart 
had 'been less than three months. 
Thus it is much easier to inter- 
pret American unemployment 
in terms of “search” periods 
between jobs than is the Euro- 
pean variety; and it is not sur- 
prising that the issue is politi- 
cally more highly charged 
on the eastern side of the 
Atlantic. The Scandinavian 
position is more like the 
American than the European. 

There arc also very large 
differences in the ratio of youth 
to adult unemployment. By far 
the highest was Italy with a 
ratio of 7.2 and the lowest was 
Germany with 1.5. The UK and 
France coma in between with 
about 3,5. The contribution of 
a sophisticated training system, 
combined with relatively high 
differentials between the young 
and the fully trained, to the 
German figure can bear 
emphasis. 

The share of foreign workers 
in the working population varies 
widely. If we leave out Luxem- 
bourg, Switzerland leads with 
nearly 17 per cent. It is seldom 
realised that Belgium has the 
same proportion of " guest 
workers ” as Germany— about S 
per cent. Austria too has nearly 
6 per cent. 

With the exception of 
Belgium, these countries have 
gradually run down the number 
of foreign workers since 1974, 
They have also been near the 
bottom of the European unem- 
ployment league. The explana- 
tion is not simply that 
foreign workers depart to make 
way for domestic employment. 
It is rather that the more mobile 
and less militant “guest 
workers” provided a cushion 
protecting domestic workers 
from the employment impact of 
excessive real wages. 

Naive theories about there 
being too many people for the 
jobs available eannot survive 
scrutiny. Since 1973 the U.S. 
labour force has grown by 2-21 
per cent per annum, compared 
with about * per cent in Britain 
and France. But the unemploy- 
ment deterioration has been 
much greater in the last two 
countries. Demand as well as 
supply shifts have to be con- 
sidered together with the move- 
ments of the price, known as 
the real wage, that ought to 
link the two. 




iSUfS i 


Letters to the Editor 

ASEAN members united on twin Cambodia objectives New issues 

From the Acting High installed regime in Phnom mun, a more intense Sino- procedure 


From the Acting High . 
Commissioner of Singapore • 

Sir, — The article by Alain 
Cass (March 2) “ASEAN in 
disarray over Kampuchea " 
highlights alleged differences 
in approach among - ASEAN 
members on bow the conflict 
in Indochina can be resolved, 
and which it claims are putting 
the group's unity under 
strain. 

On the contrary, ASEAN 
members are united on their 
twin objectives in Cambodia: 
the withdrawal of all Viet- 
namese troops, followed by 
UN -supervised free elections 
in which Cambodians can 
choose their Government 
without coercion or intimida- 
tion by any groups. 

It is the steadfast support 
provided by ASEAN that has 
helped democratic Kampuchea 
retain its seat in the UN the 
past three years while denying 
recognition to the Vietnamese- 

Fixing the price 


of gas 


From the Chairman, Notional 
Gas Consumers’ Council 
Sir, — Government has in the 
past been tempted to freeze 
“sensitive" prices for a penoa 
before an election; and nrmour 
has it that next year might be 
no exception, that gas prices 
might be frozen. . 

It has always been incompre- 
hensible that a Government 
dedicated to the operatlon of 

market forces should dictate 
prices charged to consumers by 
British Gas Corporation, 
especially in light of 

Government view th 
nationalised Wustfies should 
behave more like independent 
private sector companies- 
The Government claims, how- 
ever. that the recent senes of 
rises have brought gas 
to their current economic level. 
If so, what would a freeze sene 
(in a time of inevitable rising 
costs) but to start another cycle 
of artificially 

increases in order to JJJ 
on the lean year? buch 
increases would presumab^ 
begin to hit short* f ’ the 
Election and to repeat J2JJ5J 
years ahead the P a, " s 
inflicted on s« consumers since 

^Smaller, slower pnee 
Increases and price stability 
would be welcome always 
vided that pnccs relate to CMtt. 
It is too easy for BGC to over 
look the ^ed f or 
about costs and cost inefficiency, 
when the Government backs a 
policy of passing costs straight 

through into prices. r 
It also follows that NGCC is 


installed regime in Phnom 
Penh. 

This support continues, even 
as ASEAN seeks to broaden the 
base of the DK Government by 
encouraging the anti-Viet- 
namese Kampuchean groups to 
enter into a coalition. It is up to 
the Kampucheans concerned to 
agree on the terms of a coali- 
tion.- ASEAN can only urge 
them to form one in order to 
marshall all patriotic forces to 
confront the Vietnamese and 
to ensure more widespread sup- 
port and assistance for DK 
internatkmaliy. 

Cass is mistaken in suggesting 
that China and Vietnam are the 
two ultimate arbiters of 
stability in- the region, ignoring 
the Soviet Union whose 
“greater presence” and “in- 
creased activities” he earlier 
noted. ASEAN members are 
convinced that if the Cambodia 
-conflict drags on. with China 
backing the - Khmer Rouge and 
the Soviet Union behind Viet- 

powerless to defend gas con- 
sumers the important area 
of prices because these are dic- 
tated by Government. If pric- 
ing becomes the responsibility 
of BGC, we can 'get into the 
arena with a visible protagonist 
which would give us the chance 
to analyse, argue and negotiate 
fair but realistic pricing. 

I wish I could welcome a 
freeze but it is no good sacrific- 
ing long-term stability to short- 
term popularity. When one 
catches up on a financial loss 
after a lean year, it is neces- 
sary to recoup more than the 
money lost by underpricing. 
The under-pricing itself 
generates so many, additional 
costs. 

Sheila P. Black, 

National Gas Consumers 
Council. 

Fifth -Floor. 

Estate House, ^ _ 

130, Jermyn Street , SW1. 


nam, a more intense Sino- 
Soviet conflict is inevitable, one 
that .will inexorably draw in 
the whole of South-east Asia. ' 

ASEAN members do not want 
to see that happen nor do they 
wish to see Vietnam in ■ per- 
petual bondage to the Soviet 
Union or forced into submission 
by China. It is to help Vietnam 
avoid either fate that ASEAN 
invites Vietnam, to discuss a 
political settlement in Cam- 
bodia that takes into account 
the interests of both Cambodia 
and Vietnam, besides the whole 
of South-east Asia, The ASEAN- 
sponsored UN Resolution on 
Cambodia * embodying the 
Declaration of the International 
Conference on Kampuchea pro 
vides the framework for such 
a settlement. ASEAN members 
are united in remaining com- 
mitted to that goal. 

Mushahid AIL 

Singapore High Commission, 

2 Wilton Crescent, SW1 

The briefing was factual and 
was intended to give committee 
members an update on the pre- 
sent gas supply and demand 
position and on the policies and 
operating - circumstances of 
British Gas. Where these 
matters bear on specific clauses 
in the Bill; these points were 
broogit out 

In no way (fid. this meeting, 
designed to support the mem- 
bers of the committee in deal- 
ing with this complex piece of 
legislation, justify your report 
that British Gas was rallying 
opposition to the Bill 
C. W. Brierley. 

British Gas Corporation, 
RtoermUl House, 

152, Grosvenoy Road: SW1. 


From Hr J. Tunmcliffe 
Sir, — If the issuing houses 
wished to nuhimise the adverse 
publicity attendant upon a s tag- 
ging operation as successful 
(from the stags’ point of view) 
as the Amersham one, their pro- 
cedures could surely be over- 
hauled without undue expense. 

The names of applicants and 
drawers of cheques could be 
computerised to weed out mul- 
tiple applications. If this took a 
few days longer nobody could 
object. Brokers submitting 
applications could be required 
to specify the full names 
of the clients on whose 
behalf they were made and to 
make a declaration that the 
named clients actually had an 
account witti the brokers. 
Enforcement of this might be 
made a matter for the Stock 
Exchange Council 
If. -it was recognised that 
multiple applications were 
likely to be found and rejected, 
instead of having an excellent 
chance of being undetected as 
at present, the practice -'of mak- 
ing them would stop and the 
volume of applications would be 
significantly reduced; The task 
of processing them (even allow- 
ing for computerisation) would 
therefore be much smaller; and 
the ballot, which introduces 
such a large element of poten- 
tially profitable speculation, 
would become unnecessary. All 
cheques would be cashed and all 
applicants would expect to 
receive some shares. 

J. D. Tunnicliffe. 

100, High Street, 

Great Abingtim, Cambridge. 


Fall in the dollar oil price 


Briefing on a 


From the Managing Director. 
Economic Planning, 

British Gas Corporation 

Sir, — As the official of British 
Gas, who led the team briefing 
the standing committee of the 
House of Commons considering 
the Oil and Gas (Enterprise) 
BiH, I must correct the report 
which appeared on. the front 
page on March 4. 

The briefing meeting arose 
from an invitation which i was 
issued to all members of the 
committee including the Sewe- 
tary of State and OtherMhus- 
Sre. Fifteen MPs attend^ 
covering all parties represented 
on the committee. 


From Mr T. Ri/bczynsK 

Sir,—* Your recent appraisal 
of, and comments on, the 
impact of the fall in the dollar 
price of oil exudes an air of 
almost unqualified euphoria. 
While it is true that the 
decline will impart an expan- 
sionary momentum to the world 
economy and will have a dis- 
inflationary effect on world 
prices, the inescapable fact is 
that- because of an adverse 
movement in its terms of trade 
the UK will be worse off than 
oil- (and energy) importing 
countries. Although as adjust- 
ment In exchange rate can 

maintain total Output on the 

path that would have been 
achieved if a decline in the 
dollar price of oil did not 
occur, total real income must 
be smaller- than it would other- 
wise be. 


Domestically the. fall in the 
dollar oil price reduces the 
real income of oil producers, 
including the public sector 
whose revenues include those 
from levies and taxes on out- 
put and from the ownership 
of BNOC, and increases the 
real income of oil consumers. 
This also implies that any 
reflationary stimulus that may 
have been contemplated by 
the Government needs to be 
smaller; that because the 
public sector itself is also a 
consumer of oil its nominal 
spending (and real consump- 
tion and investment) should be 
reduced correspondingly and 
that consumption and invest- 
ment of other sectors should 
be reduced as compared with 
the preoil-fall position. 

T. M. KybczynskL 
21 Moorfields, EC2. 


Index-linked 

pensions 

From, the Chairman, 

Ashdown House Branch . 
Industry and Trade Section, 
Society of Civil and Public 
Servants 

Sir, — It would seem from 
two of your correspondents 
(Messrs Sloan and Townsend— 
March 2) that many myths still 
remain especially about public 
sector index-linked pensions 
and civil service pensions. 

At present dvil servants’ pay 
is reduced by 8i per cent to 
help meet the cost of their 
retired colleagues' pensions. 
This is the highest contribution 
level in the public sector (and 
I suspect a large part of the 
private sector too) and covers 
the complete cost of index-link- 
ing and more than half the 
basic cost In contrast with most 
other occupational schemes the 
Government, as an employer, 
does not even meet half the 
total cost of providing these 
pensions. 

In 1981, sixty per cent of 
civil serviee pensions were 
under £20 a week and 75 per 
cent were less than £30 a week. 
In addition male civil servants, 
who normally retire at 60, are 
not able to receive a state pen- 
sion until age 65 and are pro- 
gressively prevented in the 
meantime from obtaining other 
state benefits if their pensions 
exceed. £35 a week. In the cir- 
cumstances this hardly seems 
to be a case of living in the 
lap of luxury. 

Boom 326, Ashdoum House, 

123, Victoria Street , SW1. 

Poor post to 
Norway 

From the Director of Public 
Relations, The Post Office 

Sir, —The Post Office was 
sorry to learn that the London 
director of the Norwegian Cham- 
ber of Commerce is unhappy 
with the mail service from Nor- 
way to the UK (March 3). We 
are contacting him for more 
details to see where the problem 
may lie. 

Certainly for several weeks 
mall to and from European 
countries, including Norway, 
has been delayed because of a 
dispute involving British Air- 
ways’ loaders at Heathrow. No 
mail or cargo is being carried 
on BA flights, and other airlines ; 
are being used where possible. - 

So far as printed matter is 
concerned, the Norwegian Post 
Office offers a cheap overland 
service, in addition to airmail. 
The tune surface items take to 
arrive is reflected in the lower 
rates charged. 

Alan Feins tein. 

Post Office Headquarters. 

St Martins le Grand, ECl 




Our jobs to maximise investment in long term growth of the West 
Midlands economy We want to negotiate mutually attractive packages with 
other financial institutions. 

The Enterprise Board is m the business of financially resfruduring firms 
with long term viability and investing in new companies. Our personnel 
have the local commercial knowledge to seek out and identify potential 
longterm capital growth opportunities-Wfe therefore expect above average 
returns on investments between £100,000 and £3,000,000 in medium 
and large scale firms. 

Wife win be dosefy monitoring performance anywhere appropriate 
taking up board representetionJhe Enterprise Board is the ideal manager 
of funds or partner for institutions interested in sharing the risks as w^ 
the retoms. 

Initially we invite you to discuss informally how direct investment in 
viable West Midlands firms might form part of your portfolio. 

Write to Norman Holmes c/o Economic Development Ural, 
HfestfticflaiidsCounfyCotincfi, 

County HaflJLaiicas*erC^^ 

(or ting 021-300 6067) 

WESTMDLAND5 

ENTERPRISE BCARD TTD 




~~ r " -- ■ - >-.K 

' *5fS : J- ,-J. • Vv V "V 






16 


Companies and Markets 


Maxim’s ‘to 
keep casino 
licence’ 

Maxim's Casino Club looks set to 
keep its gaming licence. Pleasur- 
ama, the leisure group which is 
planning to buy the club for 
£4.&m when il acquires the hold- 
ing company. Lydiashoume. has 
been informed by the Gaming 
Board that the objection to the 
renewal of the licence will be 
withdrawn. 

An adjourned hearing of the 
licensing appeal, lodged by the 
Gaming Board, is due to be held 
on March 25. 

In a letter to its shareholders 
outlining the -terms of the 
Maxim's deal and the disposal of 
African Lion Safari. Pleasurama 
reveals that Lydiash mime's un- 
audited pre-tax profits for the 
nine months to January 3 
amounted to £2.2 m compared 
with £lm in the previous 12 
months. 

As indicated in the middle of 
last month. Pleasurama is acquir- 
ing Maxim's on a warranted 
profit basis, whereby the vendor 
will make up any shortfall in 
profits on an acreed annual 
target of £2.5m and both sides 
will split equally any surplus 
over that figure. 

The deal is to be put to share- 
holders at an extraordinary 
meeting on March 2a when they 
will also be asked to vote for 
the disposal of the African Safari 
Park — -which, confusingly, is 
based at WaiTagamba, New South 
Wales, Australia. 

Pleasurama has decided that 
Australian safari parks no longer 
fit into the mainstream of its 
business and the operation is to 
be sold to a main board director. 
Mr Stafford Bullen, for £194.000 
in cash. 

A £41.000 loan outstanding 
front African Linn Safari will be 
discharged by cash payment. Mr 
Bullen will retire from the board 
at the -annual meeting held 
immediately before the extra- 
ordinary meeting. 

CRODA POLYMERS/ 
FARBICANA BEIT 

Croda Polymers International 
has acquired — throueh its sub- 
sidiary Croda Inks Benelux BV 
Farbicana Beit Printing Ink 
Company. 

Farbicana lncaie d near Eind- 
hoven in Holland, will provide a 
manufacturing base and distri- 
bution centre for Croda Inks 
Benleux to extend its ink activi- 
ties in Northern Europe. Far- 
bianca supplies inks for general 
printwork and packaging, 
Darticularly of metal decorating 
inks to multi-national can manu- 
facturers. 

T. COWIE/SIMPLEX 

Cowie Fire. Safety and Security 
(CFS and S). a whilly owned 
subsidiary of the T. Cowie group 
has acquired the business and 
staff formerly comprising the 
Simplex Fire Detection and 
Control division. CFS and S has 
also acquired the right to become 
the sole distributor of Simplex 
fire alarm detection and control 
systems products in the UK. 

This diversification by the 
Cowie group into the fire alarm, 
detection and control field is in 
line with the group's policy to 
move further from the predomi- 
nance of its motor interests 
within the group. 


UK COMPANY NEWS 


Financial Timts Monday 

PENDING 


Platonoff reversed into 
Dhamai by Taddale Inv. 


Taddale Investments has Sold 
Platonoff and Harris, a specialist 
joinery business, to the former 
leu group. Dhamai Holdings, for 
1.16m new Dhamai shares, 60 per 
cent of those now issued. The 
Dame of the enlarged group has 
been changed to P. H. Industrials. 

Taddale is now bidding for 
the remaining 783.000 P H shares 
at 3S.75p per share and has 
arranged to place any shares 
tendered. It is also placing 
383.573 of its own shares, 
reducing its holding to 40 per 
cent 

Dhamai shares were suspended 
from trading at the company's 
request on November 19. Last 
dealings were at about iSOp, prior 
to the subdivision of the £1 
shares into 25p shares. 

Platonoff has specialised since 
the late 1060's in the production 
and installation of joinery and 
metal and other fittings for shops, 
hotels, banks, offices and staow- 
rooms. It introduced a high 
impact PVC faced door and 
frame, designed for places where 
a high standard of hygiene Is re- 
quired and has supplied it to a 
number of hospitals. 

It operates from a purpose 
built factory in Cambridge and 
has 45 employees. It was 
acquired by Taddale in May, 1979. 

Metal Products 
expecting 
modest profit 

For the half-year ended 
September 26 19S1 Metal Pro- 
ducts. Cork-based fasteners, non- 
ferrous product manufacturer, 
incurred a pre-tax loss of 
l£25,000, compared with a 
I £36,000 profit Turnover was 
down from £L91m to £1.5m. 

The directors say -the loss was 
not unexpected, as the order 
book was depressed at that time. 
Since August however, econo- 
mies have been effected., and 
there has been an improvement 
in sales, and if this trend con- 
tinues to the end of the year, 
the company should make a 
modest profit, they slate. 

Pre-tax figure for the 1980/81 
year was a loss of £7.376 
(£270,1121. 

The company has continued to 
invest a limited amount of 
money m much-needed capital 
equipment which is beginning to 
improve productivity, the direc- 
tors explain — the Industrial 
Development Authority has 
approved grants in respect of 
these investments. 

Pre-tax figures for the half-year 
was after interest payable of 
£40.000 (£39.000) and deprecia- 
tion. £29 .tWO (£28.000). The loss 
attributable was £25,000 (£46,000 
profit), after an extraordinary 
credit of £10.000 last time — 
there was again no tax charge. 

Loss per 25p share is given as 
0.S3p, compared with earnings of 
Ip. 

BRUNNING GRP- 

Dimming Group i s proposing 
to repay the outstanding £51.827 
of 8 per cent unsecured loan 
stock, 1989-94. at par plus 
accrued interest. 


Turnover has grown from 
£0.5m in the year to January 8, 
1977 to £im in the year to April, 
19S1. In the first half of the 
current year, turnover was 
£0.6ra. Profits before tax have 
ranged from £58,582 in 1976-77 to 
£27,310 in the year to April, 
1979 and £158^27 in 1980-SI. 

Pre-tax profits in the first half 
of the current year were £92,245 
and PH is forecasting a profit of 
not less than £261,000 for the 
full year. 

Dhamai sold its tea assets m 
Bangladesh in 1976 and, at 
October 31. 1981, bad net assets 
of £445.496, of which £193.154 
were in Bangladesh. No remit- 
tances of profits have been 
received from Bangladesh in the 
past six years. 

A pro-fonrra balance sheet of 
the enlarged group at October 31 
shows net tangible assets of 
£638,414, long-term loans of 
£235.000 fixed assets of £686.953. 
net current assets of £92.907, and 
blocked assets in Bangladesh of 
£193,154. 

The new directors intend to 
recomend a dividend of 3.5p per 
share for the year to April, 1982. 

Brokers to the company are 
T. C. Coombs and Co., and Stern- 
berg, Thomas Clarke and Co. 


Dealings are to begin on Thurs- 
day'. 

• comment 

The reverse takeover of a cash 
shell seems an unnecessarily 
cumbersome method of raising 
£fm for a small company now 
that the Unlisted Securities 
. Market is well established, but 
perhaps Platonoff and Harris 
would not have been glamorous 
enough for the USM punters. 
One selling point, which the 
backers may not have wanted to 
emphasise, is the group's signifi- 
cant benefit from high unemploy- 
ment It seems that the DHSS 
has become P H7s largest 
customer by far to recent 
months, accounting for 60 per 
cent of turnover, as secure 
screens have had to be fitted to 
its increasingly busy unemploy- 
ment offices. P H is not particu- 
larly happy with this emphasis on 
one client and is expanding its 
capacity so it can widen the base. 
At the offer priee, the prospec- 
tive p/e is 6.05 and the yield 
12.9 per cent, which probably 
leaves some room for apprecia- 
tion. Existing minority share- 
holders may prefer to hang on 
rather than accept Taddale's bid. 
As for the Bangladesh assets, 
apparently the worst that can 
happen is that the group will 
get nothing out of them. 


Close Brothers placing 


Close Brothers Holdings, the 
small merchant bank, has 
arranged a private placing and 
£0.4m of the proceeds will be 
applied to increasing the capital 
base of its operating subsidiary. 
Close Brothers Ltd. 

The placing has been taken up 
with three investment trusts 
within the -F & C Group. As a 
result, the shareholdings in 
dose of the three, Foreign and 
Colonial Investment Trust, F & C 


Silverthorne 
at £99,000 


Enterprise Trust and Alliance 
Investment, now aggregate 40 per 
cent. 

London and Yorkshire Trust 
Holdings has 26.7 per cent. Safe- 
guard Industrial Investments has 
13.3 per cent and Close executives 
hold 20 per cent 

Hon J. J- Nelson, an F & C 
executive, has been invited to 
join the boards of Close Brothers 
Holdings and Close Brothers Ltd. 


London and 
Liverpool Trust 


in first quarter acquisition 


Metal finishing and consumer 
goods manufacturer - Silver- 
thorne Group turned in taxable 
profits of £99,000 for the 
quarter to December 31 1981, 
compared with £357,000 in the 
12 months to September 27 19S1. 
Turnover for the three months 
was £1.07m against £4. 04m in 
the previous year. 

The directors of this group, 
whose ultimate holding com- 
pany is Eastern Produce (Hold- 
ings), point out that as already 
announced the year-end has 
been changed and the current 
accounting period ending on 
December 31 1982 will be for 
15 months. 

The next interim results and 
dividend wifi be for the nine 
months to June 30 1982. 

Taxable profits were struck 
after interest received of £2,000 
(£11,000 paid), and after tax of 
£27,000 (£81,000) the -stated 

earnings per 10? share came 
out at 2.06p (7i>9p). 


London and Liverpool Trust 
(LLT) exchanged contracts on 
March 4 for the acquisition of 
LOS Office Supplies, which dis- 
tributes office equipment, 
stationery and office supplies in 
the Leicester area. 

The consideration comprises 
£59.764 cash and the issue of 
57.747 LLT ordinary lOp shares 
to the vendors. A further con- 
sideration of the issue of LLT 
shares worth £85,953 will be 
payable, if the LOS taxable 
profits for the year to July 31 
1982 are £50,000. If this figure 
is not reached this further con- 
sideration will be reduced by 
£2 for every £1 shortfall. 

JENKS & CATTELL 

Jenks and Cattell is to redeem 
its 3JS5 per cent cumulative pre- 
ference shares at an effective 
price of 108.75p per share net of 
3.75p ACT. The 10 per cent 
cumulative preference shares are 
not redeemable and will be 
unaffected. 


December 1981 



Communaute urbaine de Quebec 

(Province de Quebec, Canada) 

Can $ 20,000,000 
16 3/4 Notes due 1986 


Banque National de Paris 


Bank Brussel Lambert N.V. 


Amro International limited Continental HGnois Timffed 

Kredielbank International Group Kuwait Investment Company (S.A.K.) 

Merrill lynch International & Co. Wood Gundy limited 

Grenier, Ruel & Cfe Inc. 



GENOSSENSCHAFTUCHE ZENTRALBANK 
AKTIENGESELLSCHAFT 
Vienna 

U.S. $50,000,000 Floating Rate 
Subordinated Notes Due 1992 
Ft>r the three months 8th March, 1982 to 8th June, 1982 
the Notes wifi carry an interest rate of 
14 }| per cent per annum. 

Interest payable on the relevant interest payment dat* 

8th June, 1982 against Coupon No. 3 wit be U.S. $19087. 

listed on the Luxembourg Stock Exchange. 

By: Morgan Guaranty Trust Company of Newlfork, London 
Agent Bank 


M. J. H. Nightingale & Co. Limited 


27/28 Lovac Lane London EC3R 8EB 


Telephone 01-621 1212 


P/E 


£000' E 

eapitaliaetion Company 

Change Gross Yield Fully 

Price on weak dhr.(o) % Actual taxed 

1,243 

Art. Brit. Ind, CIH.S... 

IS 

+1 

10.0 

8.0 


■_ 

4.168 

Airaprung 

72 

+2 

4.7 

6.5 

114 

15.8 

1.125 

Arm! cage & Rhodes — 

46 

— 

4.3 

3.6 

3.8 

8.5 

12,098 

Bardon Hill 

198 

-2 

8.7 

4.4 

9.6 

11.7 

1^13 

CCL 10 7*4. Conv. Pent. 

US 

+S 

15.7 

15.0 



5,107 

Deborah Services 

66 

-3 

e.o 

9.1 

33 

6 2 

4.143 

Frank HorseH — 

130 

-1 

6.4 

4.9 

11.7 

24.1 

11.702 

Frederick Parker 

81 

-2 

6.4 

7.9 

4.1 

12 

380 

George Blair 

52 

— 

— 

— 



3,853 

Ind. Prec. Castings — 

0 

— 

7.3 

7.7 

6a 

10.3 

2.644 

Isis Conv. Prel. 

106 

— 

15.7 

14 a 



2,429 

Jackson Group 

36 

-1 

7.0 

7X 

3.0 

ea 

15.458 

Jama* Burro ugh 

112 

— 

8.7 

7.8 

32 

10 a 

ZJ55D 

Robert Jenkins 

250 

— 

31.3 

12.5 

3.5 

8-8 

3,060 

Scrutton* "A" ...._ 

61 

+1 

5.3 

8.7 

9A 

8.7 

3.881 

Torday & Ceriiele 

159 

-1 

10.7 

0.7 

5.1 

9 S 

Z8S6 

Twin lock Ord, 

13** 

— 

— 

— . 



2.129 

TwirHocfc ULS 

78 

— • 

150 

19^ 


— 

3^15 

Unilock Holdings 

25 

+7 

3.0 

12-0 

4.5 

7^ 

S.7K) 

Welter Alexander 

77 

6.4 

8.3 

31 

9.0 

SJ51 

W. S. Vaate* 

225 

—3 

13.1 

5.8 

4^ 

8-7 


Poes* now available on Prestol paps 48146. 


Home 
Charm 
sales begin 
to recover 

Despite the exceptionally bad 
weather at the beginning of the 
year, sales at Home Charm have 
now recovered and are showing a 
marginal Improvement, says Mr 

H. E. Fogel. the chairman, in his 
annual statement 

He says it Is too early, how- 
ever, to make a forecast for the 
full year, bat he is confident that 
the outlook for the new enlarged 
group Is good. ■’ 

As reported on March 3. pre- 
tax profits fOT the 52 weeks to 
January 2. 1982. jumped by 73 
per cent to 13.81m, compared 
with £L62m for the previous 53 
weeks. Three oew stores were 
opened during the year, increas- 
ing the company’s retail selling 
area by 82,000 square feet to 

I. 08m square feet. 

A further five new stores are 
planned to open for trading in 
1982, bringing another 100.000 
square feet of selling space. This 
is in addition to the £14m Sankey 
Homecentres’ acquisition. 

Mr Fogel says the group’s 
share incentive scheme for em- ' 
ployees has proved a big success 
and many more members of the 
staff will become eligible to par- 
ticipate this year. Following the 
substantial increase in profits, 
£145,000 (£82,000) Is being allo- 
cated to tbe scheme. 

At the year-end. shareholders’ 
funds were £11 .82m (£9.46m). 
Fixed assets were little changed 
at £13.37ra (£13.1m). and current 
assets were higher at £16.1m 
(£11.96m). Net current assets 
stood at £1.34m (£3.65m liabili- 
ties). 

On a CCA basis pre-tax profits 
were £2.43m (£1.36m). 

Meeting: Institute of Chartered 
Accountants, Copthall Avenue, 
EC, on March 29, at neon. 


BOARD MEETINGS 

Tho following companies h*v# non 
Rad dates of board meetinsa «> 
Stock Exchange. Such moating* art 
usually bald for tha purpoaa of con : 
sidering dividends. Official indications 
are noi available as to whether divi- 
dends are interims or finals and the 
subdivisions shown below a ie based 
mainly on last year s timetable. 

TODAY 

Interims— AAH. GlIMord.. Par kit* 

Knoll, George H. Scholss. 

Finals — Allied international 
Designers, BTR, British Vita. Davies 
end Metcalfe. Greenfield* Istsure, 
Invergorden Distillers. Itf> Man 
Enterprises, Jesvons Engineering. 

FUTURE DATES 

Interi ms a — 

Ayer Hitam Tin Dredging ’ ■ i 

Malaysia - Mar. S 

Barrett Developments — Mar. 15 

Be[am •■■■••■? Mar. 18 

London and Strath cl yd a T roar Mar. .9 
New Central Witwstersrand... Apr.. 9 
Hnels:— ■ • 

Babcock International Mar. 3J 

Brent Chemicals International Mar. 23 

Cepe Industries - Mar; 30 

Gas and Oil Acreage Mar. 12 

Ibstoek M rnsen Apr. 2 

insurance Corp. of Ireland — Apr. 2 

Martin-Black Mar. 12 

Mo lynx Holdings Mar. 26 

Sedgwick Mer, 18 

Silkolene Lubricants Mar. 19 

Waterford Glass Mar. 23 

Willis Faber Mar. 23 


LMP/MANCHESTER 
EXCHANGE BUILDINGS 

LHP— a wholly-owned subsi- 
diary of London and Manchester 
Securities — has announced that 
in respect of its offer for all the 
share capital of the Manchester 
Stock Exchange Buildings it bas 
received acceptances for 9L25 
per cent 

The offer remains open until 
further notice. 

WHITTINGTON 

Whittington Estates, a small 
diversified investment company, 
is in discussions which may lead 
to a property acquisition. * 

The company also reports that 
Limun Company bas reduced its 
shareholding in the company 
from 17.24 to 11.5 per cent. 
Further details on the possible 
property purchase will be 
released fn due course. 


WEEK'S FINANCIAL DIARY 

The following is a record of tbe principal business and 
financial engagements during the week. The board meetings are 
mainly for the purpose of considering dividends and official 
indications are not always available whether dividends concerned 
are interims or finals. Tbe sub-divisions shown below are based 
wtainiy on last year's timetab le. 


statements may be are those of. last jar's 

following table- forthcoming baartf meeUng* 

announcements except vmere uj* iu Wishrf should he 

(indicated, ftus;) have be« ^^^^^. ^esaarily 5 

he*toi ■' AauouneeMal IgrtT 

Dm manifest . 

iMi 


Data 

APV Mi* 3D 

"Anglo A men can 

Gold March 11 

•AnBsnnnp 

Equipment ..Mar 24 

BBA - Mar 26 

•BlCC Mar 24 

BSR Mar IS 

•BTR '.......—'.Mar 8 

•Babcock lntf..-Mer-31 
Sank of 

Scotland... Apr M 
•Barrett 

Davpmts.Mar 15 
’Barrow 

Hepburn. ..Apr 15 

*B*jam Mar 18 

Sen (A.) ..—Mar 25 
Bests bell .-...Mar 25 
"Brent ... 

Chetne Mar 23 

•Bibby (J.) —Mar 16 
Sodding tons . 

Breweri»...Mar 19 
Booker 

MeConnalL..Mar 31 

Bowater Apr 9 

•British 

Aluminium ...Mar 10 
‘British 

Petroleum. -.Mar IS 
British Vrta ...Mar 8 
Brown Bowl 

Kent. Apr 10 

•BunzI Pulp.. 

■ and Paper.. -Mar 31 
Burmab Oil... Apr 15 
‘Cadbury 

Schweppes.. -Mar 11 

•Cape Ind* Mar 30 

•Carrington 

Viyolla...Fob24 

•Content 

Road Stone... Mar T5 
Croda Inti.... -Apr 14- 

•DRG --Mer 24 

•Da Beers Mar 9 

‘Ductile Steels Mar 16 
Eagle Star ...Mer 25 
Expanded 

Metal Apr 14 

Fairdough 

Constr...Mar 17 

GflE -Apr 1 

Gill and . 

Duff us... -Apr 8 

Glaxo ’ .Apr 13 


Announce' 
ment last 
year 

Final 8.2 

Final 600c 

Int. 0.55 
Final 0.9 . . 
final 6-4 . 

final ml 
Final 5.S 
Final 3.6 

Final 9.5 

Int. 3 5 

Final 1.4 
Int. 1.25 
Int. 2.332 
final 7.1 

Final .2.25 
final 4.925 

Final 1.6 

final 1.S75 
final 7.25 

fine! 2.0 

final 14.0 
Final 2.8 - 

final 1.2 

final 3.02 •' 
final 5.0 

final 2.9 
final 7.3 ' 

final nil 

final 3.23 
final 2.2S4 
final 3.0 
final 50c 
Int nil 
Final 5.5 

Fmal 2.5 

Final 2.85 
final 3.5 

Final 4.81 ■ 
Int 3.75 


LWT ,. .2 

Udferoke ■■ ** 

"LASMO , Mar 23 

lead Intis Apr 3 

Legal and ■ - - : ' 
General- .Apr 1 
•Ux Service ...Mar W 
London Bncfc Apr 8 
•Low & Bon*T Mar 29 
Lucas Inds ...Mar 2B 
•Midland Bank Mar 19 
Mills and 

• Allen Int}.-. Mar. 20 
Morgen 

Crucible.. Apr 9 

News Inti Mer » 

NEI Apr 14 

Ocean 

Tran sport... Mar 30 

Peachey Prop M,r 31 
Pearl' 

Aeiunuiea. .Apr 15 

Phoenix Asce Apr 1 
•Prudential .i.—Mer 24 
Bacfcitx end . 

Colmen.-Apr 1 

Peed (A.) Apr 2 

•Bio Tinto 

Zinc Apr 15 

. Rockware .. Mar 25 
•Royal Dutch 

Petroleum- . Mer 11 
Rubereid - - Apr w 
Rugby . _ 

Prtind Cement Apt 73 
•Scottish ' 

Metropolitan Apr 8 

•Sedgwick Mer 18 

Senior Eng ...Apr 8 
•Shell Transpt Mar 11 
Slough Esre ...Mar 25 
Smith end 

Nephew. .Mar 24 
Smiths Inds ..Apr 1* 


final 4.096 
final 5.96 
Final 38 83 
Fine! .6.96 

final 6.0 
Pinal 4.2 
Final 2.632 
Final 9 5 
Int. 2.6 
Final 14JI 

Int. SO ; 

final 30 
Ini 2830 ■" 
final 2.5 

Final 4.T 
Fine! 1 .5 

Final 73.0 ' 
Final 8.4 
Pinal 7.0 

final S O 
Final 2.46 

final 10.5. .". 
final 2.1 

final FI 3.0 
Final 265 . 

final 2.5 

Int. 1.25 
Finer 3.0 
Final 0.75 . 
final 10.5 
final 1.0’ - 

final 2.5 ' 

Int 3.7 ■ 


TODAY 

COMPANY MEETINGS— 

Alexanders Discount. 1 St- swMiln’e Lane. 
EC. 72.DO 

Enkl Cm- 82 Derby Road. Liverpool. 
12.15 

BOARD MEETINGS — 

finals: f 

Allied Int. Daotguara 

British Vita 
Davies and Metcalfe 
Greenfields Leisure 
Invergorden Distillers 
Isle of Man Enterprise* 

- jearons Eng, 
iii i#i tens: 

AAH 
GallHort 
Parker Knoll 
Sci-oles iGaorae H.1 
NCC Energy 0-4p 

DIVIDEND 4r INTEREST PAYMENTS 

AGS Research 2.3o 

Assoc. British Poods Mp 

Croda Organic Chemicals Ln. 3 ’jpc 

NCC Energy 0.*p 

Renold Ln. S.BlZSoc 

Richards 1.15 b 

Rockwell lot S9ets 

Scott! B- English and European TextHet Id 
TOMORROW 
COMPANY MEETINGS- 
Countryside Props-. Winchester House. TT 
London Well. EC. 11.00 
Eurotticim Int- tardier Hotel, Worthing. 
12.00 

Investors Capital Tat- 9 Charlotte Souere. 
Edinburgh. 12-30 

Llncrott Kilo our Grp. Institute of 
Directors. 116 Pan Mall. SW, 12 JO 
SGB Gm. The Waldorf Hctef, AUsnvh. 
WC 11J0 

Utd. Scientific Hides-, The White House 
Hotel, Albany street. NW. 12.00 
BOARD MEETINGS— 
finals: 

Com ben 

Dc Been Cons. 

Farmer IS. W.» 

Hong Kong and Shanghai Banking 
Wood house and Rlxson 
Interims: 

Ayer Hitam Tin Dredging Malaysia 

Fletcher Challenge 

London and Strathclyde Tst. 

DIVIDEND & INTEREST PAYMENTS — 
Ahbcy lr 1.41 o 

Cosenhagen Handcishank AIS 1?DKy 
npBi.1 

Ne»« Wltvwtorsrand Geld Exploration 
9.850 7Sp 

Standard Chartered Finance BV Gtd. file- 
Notes 1980 SC79.2T 
Termaco Inc. 65cts (DWJ Serin Option) 
Wlrrtertxjttom Energy Tit. OJSo 

WEDNESDAY FEBRUARY 10 
COMPANY MEETINGS — 
Blundetl-Permogtaae Hides.. The Connaught 
Rooms. Great Queen Street. WC 12.00 
Levs Foundries and Eng. Colombo Street. 

. Derby. 12.00 

Lookers, Lancashire County Cricket Oub. 
Talbot Read. Stretford. Manchester. 12.00 
Small stiaw (R.) (Knltween. Druid Street. 
HJncfclev. Leicestershire. 12.00 
BOARD MEETINGS — 
finals: 

Alcan Aiumhdum (UK) . . 

British Alumlnfaum 

Lunuva iCevlom Tea and Rubber Eat. 

Stag Furniture 
Tube In*. 

Woolworth (F.WJ 
Inter! mst _ 

Green iR.) Props. 

DIVIDEND A INTEREST PAYMENTS— 
AMF Inc. 34cu 

Agriculturel Mortgage SUpcDb. 1980-85 
*b#c- Do. 7«.ocDb, 1561-84 Tide 
Dc. B*«ocDb. 1 985-90 3.S12SPC 
Bamot Grp. 2Scts 
Seeing 3 Sets 

Citicorp OrerVNs Finance NV Gtd. Fttg. 

Rate Notes 1994 S32.03 
Dart and Kraft Inc. 90ct» 


Guff Oil 70cts 
Int. Business Machines 86cts 
Mobil Coro. 50cta _ 

Nedllbn finance BV GbL Fttg, Rate Noses 
1993 £3203.13 
Purofator Inc. 2Bcts 
Soutl-ern Rhodesia 3 hoc T 980-83 
Alnassemedl l*«pc. Do. 3Wpc 1980-85 

lAssented) 1 ’«OC 

Squibb Corp. 3t Jcta 
Sun 52-STO 
Texaco Inc. 75cts 
Travellers Corn. 82cts 
Treasury Stpc 2008-12 21 , pc 
Utd. Techno! oo Ins Corp. BOcta 
vogeUtnrtsbutt Mutal Hldgs. 6.01 991 P 
Warner Lambert 3 5cts . . 

THURSDAY FEBRUARY 11 
COMPANY MEETINGS — 

Assoc- Fisheries. St- Ermtn's Hotel. Caxton 
Street. SW. 124» • 

Cambridge Water. 41 R Batata Road Cam- 
bridge. 4.30 

Charter Tit and Agency, 20 Fenchurch 
Street. EC 2,30 

Derby Tst. The Poriman Hotel. Portman 
Souare. W. 12.00 

Ofm Grp- Ofrax House. Stephen Street 
W 11.00 

BOARD MEETINGS — 

Final* 

Anglo American GoM I nr. 

Anglo American inds • . 

Cadbury Schwesoun 
Sarice 

Joordan (T h om aa ) 

Needier* 

New Euutoment 
Nu-Svrtft Inds. 

Refuge Assurance ‘ 

Robinson CThom*») 

Royal Dutch Petroleom 
Shell Transport and Trading . 

Utd- Hlwaitt* 

Interims: 

Clarice (Matthew) 

Corrmatton Syndicate 
HTV . ■ 

Staffordshire Potteries 
Tweefomeln Utd. Collieries 

DIVIDEND Sc INTEREST .PAYMENTS — 
Dunbar Grp. 3.7Sp 

Fugiu Oversea* Finance NV Gtd. ' Fttg. 

Raw Notes 1937 $483.92 
Invectors Capital Tst. 1.65P 
VJbrOBlant Hldgs. SJISp 

FRIDAY FEBRUARY 12 
_ COMPANY MEETINGS— 

Rett Bras.. 9 Cox Street. Dundee 12.00 
Plastic. Conoructlon*. The Birmingham 
Chamber of industry and Commerce. 75 
Hirbome Road. Blrrti tog barn. 13.00 
BOARD MEETINGS— 
finals: 

Arsjio American securities 
Gas and Oil Acreage 
Kocle Int. 

Martin-BlaCk 
Scottish Television 
Standard Telephone and CaMOS 
Interims: 

Bracken Mine* 

Hunt and Mascrop {Middleton) 

Klnroia Ml 


Leslie Gold Minos 
UnKei Gold Mines 


Eorothoon int. 3 ip 
Genera! Motors SOcts. 
Grace CW. R.) ft Set* 


Da 5 DR* Set* 


Wlnkelhaak Mines 

. DIVIDEND A INTEREST. PA YMEW._ 
Alan Aluminium 4 Set* {Dtv.lScrtp optlonl 
Astra Inds. Grp. 0.1 25p 
Charter Tot. and Agency U29n 
Country and New Town Prop*. Q-25p 
Free Saw Oevolopcnent and Inv. Core. 
.1 Sets 

Hales Props. Gro. i* 

Into Sets 'Tor quarter' (Wv. Scrip option). 
Monsanto 95cu (For quarteri 
Muirhead 2p 
Restmor Grp. O.Sp 
South African Lend 
1 3.79268 b 

Southvaal Hldgs. 107.S82940 
Vaal Reefs Exploration and 
. >92.aOA92p 
Western Deep LvteU 113-IOOOIp 
. SUNDAY FEBRUARY 14 
OrVIOENO i INTEREST PAYMENTS — 
FFi iUk Finance! Ln. uupc 


and Exploration 


Mining 


Gtynwod Apr 8 Final 4,9 

'Guest Kean ...Mar 18'. Final 4-0 
•Guineas 

Pert-Mar 16 
Hfirobro Life.. .Apr 14 
Hawkar 

Slcf delay- -.Apr 15 Final 52 
•Hapworih 

Ceramic... Mar 24 final 4.2B8 
•Higgs and 

Hlfi—Apr 8 final 2.8 
Hongkong and 

Sh'ghfii Bkg-.Mar 9 Final HKS0.47 
"Jacobs 

. (John l.)...Ma» 17 final 1.6 
Kieinwort 

Bonaon... Mar 26' final 0.0 


Int 2.75 
Final 6.6 


•Staffs Potto 
Standard and 

Chartered... Apr 7 

►STC -.Mar 12 

"Stertiey Mar 18 

Sun Mllancs Apr 1 
Taylor 

Woodrow ..Apr 9 
. Tilling (T.) -Mar 18 
Transpt Dbv ...Mar IS 
Tricantrol . .Mar 19 
Tuba lnv» ...Mar 10 
Turner and 

Newell.. .Mar 17 
. *Lhd Biscuits... Mar 11 
Uld City 

Merchant*... Mar 12 

■Vickora Mar 24 

Wair ‘ Apr 1 

rWilli* Faber ...Mar 23 
•Wofsaloy- 

Hughas ...Mar 16 
•Wool worth 

(F. W.)...Mar 10 
Yorkshire 

Chams...Apr 8 


.Mar 11 int- nH 


Final 20 5 ' 
Final 6 0 
final 0.5 s 
Final 18.0 

Final TO.W 
final 4 a 
Final 2.8 
Final 5.0 
Final 2 5 

Final 3.0 
Final 2.S 

Int 0.6 
final 7.48. 
Final nil 
Final 8.2 . 

Int 4.4 -. 

Final 3.568 


Final nil 

* Board meeting intimated. 1 Rights 
issue tinea made. * Tax free. S Scrip 
issue since made. 5 Fortcwt 


Public Works Loan Board rates 


Effective March 6 
Quota loans repaid 
at 


Mon -quota loans A • wand 

at 


by ElPt 

At 

maturity! 

by ElPf 

A# 

meturitaii 

14 i 

14* 

14} - 

151 

15} 

15* : 

14i. 

14f 

15} 

15* 

151 

151 

14| 

m 

15 

15* 

15f 

151 

14| 

14} 

14} 

15* 

15* 

151 

14} 

15 

155 

15* 

15| 

151 

15 

15} 

14} 

15* 

15| 

151 

15 

14} 

14* 

15\ 

15* 

15* . 

14f 

14* 

14| 

15* 

15* 

15 

14* 

14| 

14f 

15} 

15 

15 


years 

Up .to 5 

Over 5, np to -6 ... 

Over 6, up to 7 ... 

Over 7, op to 8 ...* 

Over 8, op to 9 ..V 
Over 9, op. to Iff... 

Over 19, op to 15 
Over 15, op to 25. 

Over 25 ; 

- . • Non-quota loans B are 1 per cent higher in each case than 
non-quota loans A. t Equal instalments of principal, t Repayment 
by half-yearly annuity (fixed equal half-yearly payments to include 
principal and interest). 5 With half-yearly payments of interest only. 


LOCAL AUTHORITY BONO TABLE 


Authority ■ 
/telephone number in 
parentheses; 

Kn owsley (051-548 6555) 

Roehfard (0702 546366) 


Annual Interest Life 

gross pay- Minimum of 
interest able sum bond 


% 

14i 

IS* 


1-year 

i-year 


£ 

1,000 

500 


Year 

4-8 

2-5 


FT Share 
Information 

The following securities have 
been, -added to the .Share 
Information Service: 

Asset Special Situations (Sec- 
tion; Invesonen* Trusts). 
Eqrapa (IiKkisteials). 

T8 mx Resources (CM and Gas). 


SPAIN 


1981 


March 5 

High 

Low 


% 

339 

SI 

Banco Bribes 

... 335 

360 

280 

Banco Central 

,.. 354 

320 

229 

Banco Exterior 

.. 310 

330 

239 

Banco Hi spans 

... 322 

12B 

110 

Banco Ind. Cat. 

no 

383 

284 

Banco Samandar 

- 363 

. 235 

M8 

Banco Urqirijo 

227 

382 

263 

Banco Vizcaya 

372 

252 

203 

Banco Zaragoza 

239 

17S 

82 

Oragado* 

.. 161 

75 

45 

Eapenola Zinc ... 

65 

72 

55 

Feeea 

.. 59.5 

55 

22 

Gil- Praoiedo* 

46 

82.7 

63.5 

Htdrola 

.. . 64 

62.5 

50 

Iberduaro 

.. 50.5 

102.5 

TO - Petrai«o« 

.. 4 96 

104 

70 

Petroliber 

96 

102 

14 

Sogefiea 

.. . 14 

80 

60 

Telefonica 

72 

78.2 

GO 

Union Elect. . .. 

.. 63.5 


FINANCE FOR INDUSTRY TERM DEPOSITS. 

Deposits cf£U)OO^W)00 accrued fixed tenrn of 3-lOyeare. 


12/3/82 

Terms (years) 3 4-5 6 7 8 Q to 1 

DITERESTK 131 131 131 I3i 131 14 id 341 

ST 05115 ^ andfijAer mforaialiDn from The Treasure:; Rnance for 

“^^^^dmgaunpanyforiCFCandKX 



This announcement appears as* matter of record only. 



BANCO DO BRASIL S.A 


London Branch 


U.S. $30,000,000 
Negotiable Floating Rate 
Certificates of Deposit due 1985 


Manager and Agent Bank < • r 

Samuel Montagu & Go. Limited 


3rd March, 1982 








v 

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, . W •v : 

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t 

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S' ; 

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1 * 1 

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... iinauciaL Times Monday March 8 1BS2 

eoafnmes and Markets 


17 


■s 


'f<! 


* e 


" t 


rales 


t".c ; 




"Wi-JI 
’• U. 

» li, 

i li, 

i ii, 

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: 13. 

' 13 . 

: 13 

i: 


ABLE 


epostfs. 


INTERNATIONAL CAPITAL MARKETS 


CREDITS 


Bankers uncertain 
on margins for 
Southern Europe 


ITALY’S ELECTRIC utility, 
ENEL hag joined the Jong list 
of borrowers m Southern 
Europe waiting to float large 
credits in the Euromarket 
- It is understood to have 
approached international banks 
about the possibility of rais- 
ing an amount of up to J500ra. 
Unlike some, its previous bor- 
rowings the funds would be 
raised purely on a margin over 
Eurodollar rates rather than 
in the prime rate based sector 
of the market. 

ENEL's last major borrowing 
was a C$500 m, eight-year loan 
arranged last Autumn with a 
margin of f per cent over 
Canadian prime. 

The big question bankers 
are now asking ts what son of 
margins are appropriate for a 
London interbank offered rate 
(Libor) deal. 

There has been talk of up- 
ward pressure on margins right 
across southern Europe for 
some tune, but with so many 
deals still pending no one is 
quite certain how well-founded 
such talk is. 

Some indication could come 
this week as Spain is thought 
to be. poised to award the 
mandate for a credit of around 
$500m. The loan seems likely 
to retain an element of 2 per 
cent in its margins partly 
because there are still a number 
of banks keen to lend to Spain. 

The domestic rqarket itself 
has also become very competi- 
tive recently with Spanish rail- 
ways, Renfe, reportedly paying 
a margin of only 1 per cent over 
Madrid interbank rates for its 
latest 5bn peseta, seven-year 
deal. This is a very sharp drop 
on levels seen even a few 
months ago. 

Greece, whose $4O0rn man- 
date is also close, does hot offer 
similar ancUUary business; nor 
does Portugal which bankers 
now say appears most- unlikely 
to manage a I element in its 
margins. 

Indeed the Portuguese 
autborties appear to have 
recognised that they do face 
more of a lenders' market and 
are understood to. have been 
considering dividing their pro- 
posed credit into a package in- 
volving the use of the- bond 
market to reduce their re- 
course to tile Eurocredit financ- 
ing. 


Widespread rumours of a 
new jumbo credit for Belgium 
are at best premature. Belgian 
officials say they have not 
asked banks to consider such 
a deal and will continue for 
the time being with their 
policy of raising small discreet 
loans on a dub or bilateral 
basis. 

Typically these credits are 
for amounts of up to $100m 
over five to seven years 
at margins of H- points 
over Libor, which could 
not easily be sustained in 
open market syndication of a 
jumbo credit. 

In Latin America, the $2bn 
credit for Pemex has done well 
enough in syndication to open 
the possibility of an eventual 
increase in amount, though 
this will only be considered 
seriously when syndication 
closes on Wednesday. 

As of last Friday the credit 
had attracted 29 lead managers 
as well as more than $S50m in 
commitments from managers 
and other participants. More 
funds were expected to be 
committed from Japanese 
banks 

The credit has withstood the 
traumas of the Mexican devalu- 
ation partly because Pemex 
revenues are mainly in foreign 
exchange and thus unaffected 
by the lower value of the peso. 

The $200m mandate for 
Argentina’s electric utility 
SEGBA was confirmed last week 
as involving a split margin of 
lfr-1} over eight years with re- 
payments starting after three 
years’ grace. Fees total li per 
cent compared with 1} per cent 
on the recent borrowing by the 
oil company YPF. 

SEGBA had hoped to offer 
an alternative prime tranche 
i per cent below the Libor 
margins but this has been 
whittled down to 1 per cent by 
the lead banks who include 
Arab Banking Corporation, 
Bank of Tokyo, Bank of Yoko- 
hama, CCF, Gulf International, 
and Yasuda Trust. 

Romania has now asked banks 
to reschedule over 61 years 80 
per cent of debts falling due 
this year and last, while Poland 
has been set a new target date 
of March 26 by which time 
interest stiU outstanding from 
1981 should be made good. 

. Peter Montagnan 


INTERNATIONAL BONDS 


Euromarket debut for Ma Bell 


MA BELL came to town last 
week and she made her Euro- 
market debut with one of the 
most aggressively-priced deals 
ever seen. 

Credit -Suisse First Boston’s 
8400m seven-year- offer for 
American Telephone and Tele- 
graph carried a heart-stopping 
14} per cent coupon indication. 
Investors from London to 
Zurich stepped back for a 
moment, stared at the coupon — 
a full 100 basis points below the 
World Bank’s newest issue— - 
and then started filing their 
buying orders. 

How is tiie issue selling? 
Why did AT and T choose this 
moment to arrive in Europe? 
Are investors gening a fair 
deal? The answers to these 
questions suggest a slickly- 
planned offering, a carefully- 
timed appearance and a pricing 
package which pushes investor 
psychology to the limit. 

The 8400m of AT and T paper 
is said to have sold out on 
Friday; the pricing is scheduled 
for tomorrow but could .be 
brought forward to today. The 
design of the paper looks tailor- 
made for European fund 
managers and Swiss retail 
investors. There are few things 
big institutions tike better than 
top-qualiry U.S. corporate paper 
with a maturity of seven to 10 
years. Many of the large insti- 
tutions don’t mind giving up a 
little on the coupon if they get 
an appropriate U.S. name and 
maturity. 

Why bad AT and T not come 
to the Euromarket before? 
Larry Prendergast. AT and Ts 


7.165 


Eurodollar Issues 


from Jan 1,1982 



Zero 

Coupon 

Bonds 


assistant treasurer, explained: 
“ We have not assessed the 
Euromarket in the past because 
up until a year and a half ago 
it wasn’t there in terms erf size 
or maturity. The rate advantage 
wasn’t there either.'’ 

The usual U.S. size of the 
group's bond offerings is S300m 
to $600m. The AT and T parent 
company ha*. issued 10-year 
notes, but most of the telephone 
company’s borrowings are 30- to 
40-year maturities. 

Most important, however, is 
the cheaper cost of borrowing 
in the Euromarket. The yield 
on existing 30-year Bell bonds 
in the States is 15.75 per cent. 
If one adjusts for the much 
longer maturity (deducting 
i per cent) and the fact that 
these are seasoned issues 
(another 1 per cent), there 
could still be a 50 basis point 


spread between the U.S. and 
European yields. 

That makes 14} per cent at 
par (the price many market 
participants expect) cheap for 
the borrower. 

If the orders keep coming in 
the managers may choose to 
make- the deal look even better 
by increasing the issue above 
8400m. And a successful debut 
for the meanest borrower in 
the market will stand it in good 
stead when it next decides to 
beat the high cost of North 
American funds with some more 
of its planned $4bn to 84.5bn 
1982 external financing. 

AT & Ts journey to the Euro- 
bond market wu helped last 
week by the signs of a sus- 
tained. but not a runaway rally. 
Prices of fixed-interest paper 
in the Eurodollar sector rose 
by more than two points on 


the week, by } to 1 point in the 
Euro D-Mark sector and by : 
to 1 points in the Swiss franc 
foreign bond market- 

Strong buying demand for 
the AT StT paper came in with 
offers of a 1} per ceni discount. 

Last week was a good one for 
others as well. Burroughs saw 
its well-managed S50m 153 per 
cent bonds priced at 100} and 
trade at around the issue price 
on Friday. This deal was cer- 
tainly among the best of the 
$!.86bn of new fixed-interest 
paper launched over the past 
fortnight (see chart). 

In other parts of the Euro- 
market. activity has also been 
brisk. Last week saw a signifi- 
cant rise in trading activity in 
the Eurosterling sector. By 
Friday some traders were specu- 
lating that the surge could be 
a harbinger of new Eurosterting 
offerings. 

In the zero coupon sector the 
bottom fell our temporarily 
when word reached Europe that 
the Japanese Ministry of 
Finance had halted the purchase 
of zero coupon bonds by 
Japanese investors. Prices fell 
dramatically at mid-week, with 
some issues losing up to 10 per 
cent of their relatively small 
prices. 

Bargain-hunters and Con- 
tinental investors moved in on 
Thursday and Friday, bringing 
zero coupon prices back up and 
leaving some in the market 
wondering how important the 
Japanese were after all. 

Alan Friedman 


BANK LENDING 


Developing countries 
face tougher terms 


DEVELOPING COUNTRIES did 
quite well in the 1970s as far 
as bank burrowing is concerned. 
Their total debt rose by an 
average 23 per cent a year, and 
the share of private debt rose 
from just tindeT half ihe total 
in 1970 to nearly ivo-thirds by 
1980. Will they continue to do 
so well in the new decade? 

Definitely not. according ui a 
study recently released by 
Banker & Trust, the large New 
York hank, which prediris that 
banks will be much tougher tin 
their existing debtors and more 
selective in their new lending. 

The siudy, prepared hy the 
bank's international economists 
headed hy Mr Larry Brainard. 
predicts that a combi nation of 
persistent high “ real " rates of 
interest and economic stagna- 
tion will hurt ihe external 
financing position of many 
developing countries. The lend- 
ing hanks will, in turn, harden 
their terms, and the inter- 
national capital markets will 
force developing countries to 
pul their house in order if they 
want to preserve access to 
those markets. 

The study traces this new 
wariness on Ihe part of the 
banks to several causes. 

One is the growing concentra- 
tion of (ending to develop- 
ing countries. During the 
lasr three years, the ex- 
posure of the nine largest 
U.S. banks to non-oil developing 
countries rose from 231 per cent 
to 276 per cent of their capital. 


Mr Brainard and his ream Think 
b:mks will try lo bring the pace 
of this lending more in line 
with their underlying capital 
growth, which suggests that 
loans will grow by about 10-12 
per cent a year, judging by 
recent 1 rends. 

The study predicts that the 
IMF will have to play a bigger 
role in foreins financial disci- 
pline on borrowers, as it did 
successfully in two recent 
problem cases: Turkey and Sri 
Lanka. Some countries are 
able to do this by themselves, 
such as Brazil, which actually 
cut economic growth in 19S1 
in an effort to get the better 
of iis enormous debts. 

Mr Brainard believes all this 
implies that tougher limes ho 
ahead for borrowers, together 
with a widening of the gap 
between rich and poor coun- 
tries. Ahhuugh political strains 
could ensue. Mr Brainard argues 
that the trend is a necessary 
and healthy one. 

" Countries which hhow hesit- 
ancy or inability in address 
ihetr problems are places where 
we will not seek lu mcrej.se 
our lending," he writes. * In 
an era 'of high interest rates 
the countries that gel rewarded 
are those who can turn over 
capital faster than others. 1 
hope we shall see a return 
to some degree or sanity and 
more realistic spreads in inter- 
national lending.” 

David Lascelles 


CURRENT INTERNATIONAL BOND ISSUES 



Amount 

Maturity 

Av- life 

Coupon 

Price 

Lead manager Offer yield 

Borrowers 

m 

yean 

% 



% 

US. DOLLARS 








Amada§$ 

30 

1997 

15 

Si 

100 

Nippon Kangyo, Schroder 







Wagg, Nomura IntL, 
Dai-lchi Kangyo 

5-500 

Occidental Petrol-t 

75 

1987 

5 

16} 

100 

SBC IntL Dean Witter 






Reynolds 

16.750 

Fujikura Cabled 

15 

1997 

15 

6 

100 

Nomura IntL 

6M0 

Burroughs CorpJ 

50 

1988 

6 

75} 

100} 

Kidder Peabody lnd. 

15582 

Best Denki Co.§£ 

IS 

1997 

75 

51 

75} 

100 

Nikko Sets, Wardley 

5.875 

Swed. Export Credit^ 

100 

1989 

7 

100 

Morgan Stanley, Bank 

75.250 






of America, CSFB 

City of Montreal! 

100 

1992 

10 

15} 

100 

Societe Generale 

15.750 

A. T. & T. 

400 

1989 

7 

• 

* 

CSFB 


TransCanada Pipelines 

100 

1992 

8.8 

* 

* 

UBS Secs^ Salomon Bros. 


Credit Agricoleft 

200 

1997 

15 

5}* 

100 

Morgan Stanley, 

5.250* 






Goldman Sachs 

(ADBt 

55 

1987 

5 

75} 

100 

Salomon Bros. 

15.125 

Philippine Dnt Bankf? 

30 

1990 

73 

6}* 

700 

Lloyds Bank Inti. 

L500* 

Ireland! - 

100 

1989 

* 

• 

100 

Nordic Bank, Dat-khi 



r 




Kangyo 


CANADIAN DOLLARS 
Hydro-Quebec^ 

50 

1989 ■ 

7 

Ui 

700 

Merrill Lynch 

76-500 


Borrowers 

Amount 

m 

Maturity 

Av. life 
years 

Coupon 

Price 

Lead manager 

Offer yield 

9/ 

/O 

D-MARKS 

Spanish Telephones^ 

100 

1992 

10 

10} 

100 

Dresdner Bank 

10.500 

Nafirua$ 

150 

1990 

8 

n 

100 

Dresdner Bank 

114)00 

Ferro vie 

150 

1987 

5 

101 

« 

Commerzbank 

tt 

Gaz de France 

100 

1992 

10 

9} 

* 

West LB 

V 

SWISS FRANCS 

Amada**$t 

SO 

1987 

— 


100 

UB5 

6.250 

SCNt 

80 

1992 

— 

8 

100 

CS 

8.000 

Mitsubishi Mining**!? 

40 

1987 

— 

5} 

100 

CS 

5.625 

Swed. Export Credit 

55 

1992 

— 

* 

Ik 

Soditic, Chase Man. Bank 

Occidental Petroleum 

100 

1992 


* 

* 

(Suisse), Morgan 
Stanley SA 

SBC 

• 

* 

Australia**? 

300 

1988 

— 


100 

UBS 

7.250 

GMAC Ovs. Fin.**? 

150 

1988 


3 

100 

UBS 

7.250 

Crown Zellerbach**? 

50 

1988 

— 

100 

UBS 

7.375 


* Net yet priced, t Final terms. “• Placement, t Floating rate note. ® Minimum. 9 Convertible, 
with U.S. Securities and Exchange Commission. Note: Yields are calculated on AIBD basis. 


tt Register**! 


YEN 

World Bank? 

20bn 

1992 

10 

8} 

100 

Daiwa Secs. 

8.37S 

Asian Devt. Bank? 

20bn 

1994 

12 

83 

99.65 

Nomura Secs. 

1L247 

japan Devt. Bank 

I2-5bn 

1987 

5 

« 

* 

Nomura Secs., 


EIB? 

20bn 

1992 

9 

8.2 

99 S 

Morgan Guar. 
Daiwa Secs. 

• 

8.446 


- - j.41. i a - -v* i " 


Thhtmtnmcememm^^^ a matter of record only 


January 1982 


AZ3ENDA NAZIONALE 
AUTONOMA DELLE STRADE 

A.N.A.S. 

US$100,000,000 

FLOATING RATE NOTES 1990 

Convertible until February 1985 into 13 percent Bonds 1992 

« •• 

by virtue of existing legislation direct 
and unconditional general obligations of 

THE REPUBLIC OF ITALY 


BANQUE NA 3 IONAIE BE PARIS 


BANQUE] 




rXKSLAI 




:sa. 


nok'ioi 


IJANCA COMMERCIALS FEALIANA BANQtJE BELA SOCB^n|^W^fCDEKE EDRGPJ 
CREDIT COMMERCIAL DE FRANCE CREDIT LYONNAIS 

CREDIT SUISSE FIRST BOSTON MMf I13 > 

XTCB ENTTERNATIO NA T . T JM1TB D 

MITSUBISHI BAlsDK SA. 

!HENHffiOSECl®niE5C^(EOW^®Iil^ 


FDJIINTERNATIONAL FINANCE UMUED 
MANUFACTURERS HANOVER LIMITED 
SAMCM.MOMAGU&C& IIM3ED 
SOOETEGlNERAIEDERi^IJESAe 


gLANDARP CHARTERED MERCHANT BANK UMUED 
SUMITOMO HNANCEIN1ESNAIIONAL TOKAI BANK NEDERLAND N,V. 

YOKOHAMA ASIA LIMITED 

CRfiDETDOSGKD EOROGEST&P.A. 
^INAINILLTDCHIERNSEy KAbSALI^INlSRNA'nONALBANK&A. KSOWAB&NKNBDERLANDK.V. 
MrrsUBISHITRUST&'BANKINCClMfffflJAIKfflCSJFC^^SA. THBTAnOE)BEBANEgUXEMBOURO&A. 
TARdgin MALWARBUBQ-KBKaaaa3>©tWISIZ&ODi 



Japan Air Lines Company, Ltd. 

(incorporated with limited liability under the laws of Japan) 

U.S. $ Denominated 7vi% Yen-Linked Guaranteed Notes 1987 
of a principal amount equivalent to 
Yen 8,600,000,000 

Unconditionally and irrevocably guaranteed by 

Japan 


Daiwa Securities Co. Ltd. 

Bank of Tokyo International Limited 
Credit Suisse First Boston Limited 
IBJ International Limited 
The Nikko Securities Co., (Europe) Ltd. 

Swiss Bank Corporation International Limited 


Morgan Guaranty Ltd 

Banque.de Paris et des Pays-Bas * 
The Development Bank of Singapore Limited 
Kuwait Investment Company (S.A.K.) • 
Salomon Brothers International '■ 
S. G. Warburg & Co. Ltd. • 


Algemene Bank. Nederland N.V. 

Bank of America Inter national Limited 
Banque de l’Indocrtne et de Suez 
Banque Nationals de Paris 
Caisse des Depots et Consignations 


Amro International Limited Banco del Gottardo 

Bank of Tokyo (Holland) N.V. 
Banque de '\euflize. Schloi berger. Mallet 
Barclays Bank. Group Baring Brothers & Co., Limited 

Chase Manhattan Limited Cuemicvl Bank International Grout 


Citicorp International Group Commerzbank Aktiengesellschaft Continental Illinois Jjmited 

County Bank Limited Credit Commercial de France Credit Industrie!. et Commercial 

Credit Lyonnais Creditanstalt-Bankverein Dm-Ichi Kangyo International Limited 

DBS-Daiwa Securities International Limited DG Bank Deutsche Genossenschaftsbank 

Dillon, Read Overseas Corporation Fuji International Finance Limited \ 

Goldman Sachs International Corp. Hill Samuel & Co. Limited / 

The Hongkong Bank Group Industrielbank Von Japan (Deutschland) Aktjemgesei.lsch.ift 

Kuwait Foreign Trading Contracting and Investment Co. (S.A.K.) Kidder, Peabody International Limited .. 
Taleixwort, Benson Limited Lloyds Bank International Limited LTCB International Limited 

Manufacturers Hanover Limited Merrill Lynch International & Co. Mitsubishi Bank (Europe) S-A, 
Mitsui Finance Europe Limited Samuel Montagu & Co. Limited Morgan Grenfell & Co. Limited ' 
Morgan Guaranty Pacific Limited Morgan Stanley International New Japan Securities Europe Limited 

Nippon Credit Bask International (HK) Ltd. Nippon Kangyo Kakoiaku (Europe) Limited • 

Nomura International Limited Orion Royal Bank Limited Saxwa Bank (Underwriters) Limited 

J. Henry'Schroder Wacg & Co. Limited Societe Gene rale Soci£te Generale de Banque S.A. - 

Sumitomo Finance International • The Tatyo Kobe Bank (Luxembourg) S.A. Tokai Bank Nederland N.V. - 
Union Bank of Switzerland (Securities) Limited Wako International (Europe) Ltd. 

Yamaichi International (Europe) Limited — > 


Westdeutsche Landesbank Girozextrale Wood Gundy Limited 


February 24. 1982 


All of these securities hare been sold. This announcement appears as a matter of record onfy. j 


/ * 


ri--j5 '•'T-TT:’**.- 









IS 


Companies and Markets 


Financial Tines Monday; 



INTERNATIONAL CAPITAL MARKETS AND COMPANIES 


* *■ • " r ■ 1 . ■- * 


U.S. BONDS 


Economic weakness 
suggests further 
decline in rates 


U.S. INTEREST rates are likely 
to show farther declines this 
week, including possibly a cut 
in the prime rate.- 

The optimism in Wall Street's 
credit markets is buoyed by a 
clutch of bullish factors, not all 
of them specially encouraging 
for the world at large, but good 
enough /or bond dealers who 
are looking above ail for signs 
of deflation. 

One is the persistent weak- 
ness of the economy. With un- 
employment back up to S.S per 
cent and no indication of a 
pick-up in economic activity, 
the chances of a sudden rebound 
in credit demand seems increas- 
ingly remote. 

The market’s growing confi- 
dence was bolstered by test 
Friday’s money supply figures 
which showed a sharp and 
welcome fall of $3bn in Ml. 
Aside from wiping out the last 
vestiges oF the uncomfortable 
bulge that developed in January 
and February, this decline puts 
Ml 'for the first time this year 
within the range that Mr Paul 
Volcker, the Fed chairman, says 
he is prepared to tolerate. This 
rate is slightly higher than tho 
Fed originally wanted, but it 
was raised to accommodate the 
bulge. 

For the time being, the 
Treasury has also found itself 
with enough cash in hand to 
avoid having to come to the 
credit markets for much more 
than routine requirements. The 
cause appears to be a windfall 
in budget receipts, though for 
what reason is a matter of some 
debate. 

The surfeit of cash is likely 
to be temporary. But Wall 
Street has taken heart from 
another unusual predicament in 
which the Treasury finds itself. 
With its test bond sale in Feb- 
ruary, the administration 
exhausted its authority to sell 
long-term debt and will have to 
ask Congress for new authority 
for its next bond sale. The 
chances are that Congress will 
use this opportunity to try and 
force the Administration to 
curtail its spending or take 
other steps to improve the 
budget balance. Whatever the 
outcome, the confrontation con- 
tains the chance that the next 
Treasury bond sale will be 
delayed, giving the market a 
bit of a breathing space. 

The three-week-long rally in 


the credit markets has pushed 
bond prices up between five and 
10 per cent, and brought money 
market interest rates down by 
two to three per cent. The Fed 
funds rate suffered some 
upward pressure, though, put- 
ting a slight constraint on an 
otherwise eaper market. Certifi- 
cates of Deposit, which usually 
determine changes in the prime 
rate, fell below 14 per cent by 
tiie end of last week, suggest- 
ing that' banks could com- 
furtably bring the prime down 
£ per cent or so from its present 
level of 161 per cent. 

Aside from bringing some 
welcome relief to America’s 
tightly squeezed borrowers, 
such a cut would be a political 
boon lo President Reagan whose 
embattled position over the 
budget has even provoked his 
normally loyal captains of 
industry to break ranks and 
appeal to him to . show more 
flexibility. 

The strength of the bond 
market has. produced the 
expected stirrings from would- 
be borrowers keen to take 
advantage of lower costs. IBM 
Credit, the finance arm of the 
computer company, filed plans 
for an unusual three-year 
extendable note. Investors will 
have the option to extend the 
noLes for an additional three 
years in 19S5. 1988 and 1991 
on the basis of yields to be set 
at each of those dates. The 
notes, of which SIGOm are being 
offered, are a variation on the 
floating rale note and are being 
managed by Salomon Brothers 
and First Boston. 

Despite the sudden obstacle 
thrown in the way of the 
original issue discount bond 
market by the Japanese Finance 
Ministry, Union Pacific last 
week- sold $200m worth. With 
a coupon of 6 per cent, they 
were priced at 57.42 to yield 
14.07 per cent to maturity in 

1992, and moved well. 

David Lascelles 


U.S. INTEREST RATES (%) 

Week to Weak to 
Mar 5 Fob 26 

Fed. Junds wkly. ay. 14.61 13.27 

3-month Trcas, bills 12 OB 12.58 

3-month CD 13.80 14 20 

30-ycor Trcas. bonds 13.24 13.7B 

AAA UUI.' ... I '15.75 16.12 

AA Industrial . . .. 15.CO 1S.50 

Source: Salomon' Brothers (estimates). 
In the week to Fobru-ar/ 24 Ml fell 
53bn to a seasonally adjusted 
$444 fl bn. 


Johannesburg shares hit 
by slump in gold price 


BY CHRIS WILSON IN JOHANNESBURG 


THE PAST three weeks have 
been a time of reckoning for the 
optimism who until recently had 
believed that _ Johannesburg 
share prices were finhJy based. 
All the logic which late last 
year and early this had been 
used to prove Industrial share 
prices could not fall, has been 
swept away by the wave of sell- 
ing which reached a peak last 
Friday. 

Over the past 15 trading days 
the Rand Daily Mail 100 index 
of industrial shares has fallen 
by 12.9 per cent to 618.4 having 
reached an all time high of 
711.7 on January 8 this year. 

At the same time, and tracking 
last week's gold price declines, 
the Rand Daily Mail gold index 
dropped to 433.0 on Friday, a 
point it last crossed going in 
the uther direction in November 
1979. On the last day of trading 
before Christmas 1981, the gold 
index was 600.8: 

At the end of last week the 
general feeling among Johan- 
nesburg stockbrokers was that 
the fail had not been com- 
pleted. They pointed out that 
the decline had been accom- 


panied by a surge of selling 
which had lifted the stock 
exchange turnover to Rand 
17.46m. its highest level since 
last June. Since the start df 
this year daily turnover has 
fluctuated between Rand 3.5m 
and Rand 12.4m. 

Behind the change in in- 
vestors’ sentiments is the gold 
fall of the past few weeks. Last 
year the gold price dropped from 
almost $600 an ounce to little 
more than $400 an ounce: This 
month it has tumbled further, 
falling by around $20 to $343. 

At the same time, recent fiscal 
moves are adding to the price 
constraints. The South African 
authorities have now taken 
internal measures aimed at 
maintaining the Rand's value as 
a means of combating inflation. 
This implies that Rand denomin- 
ated gold prices received 
by Che mines will now more 
closely match world market 
prices. 

With lower gold prices the 
mining industry win make sub- 
stantially lower tax payments 
Shis year and it is widely 
expected that tax increases 


elsewhere will form a major 
pan of the national budget to 
be presented on March 24. 
General Sales Tax has been 
increased from 4 per cent to 
5 per cent following an earlier 
tightening of credit. 

All this has further added to 
the pessimistic profit forecasts 
being made by industrialists 
and retailers whose earnings 
are already showing signs of 
strain. Interest rates have 
moved sharply higher in the 
past two weeks with the prime 
lending rate increasing from 
IT per cent to 20 per cent 

It had been widely expected 
that corporate earnings growth 
would simply slow this year. 
Now, economists and stock- 
brokers point to the possibility 
that 19S2 will result hi profit 
decline for many of South 
Africa's industrial sectors as 
welT as for the all-important 
gold mining industry. 

The reversal in fortunes is 
something new for Sooth 
African investors who in recent 
years, have grown used to con- 
tinuous strong profit growth. 


Finance 
for U.S. 
genetic 
engineer 

By David Fishlotfk 

BETHESDA Research Labora- 
tories (BRL), the troubled 
U.S. biotechnology company* 
which recently announced a 
major cutback in staff, has 
obtained the first $lm tranche 
of “ bridge ” financing, 
through Now York investment 
hankers, F. EberstadL 

BRL was one of the first of 
a large crop of biotechnology 
companies seeking to exploit 
recent advances in genetic 
engineering. Its policy was to 
finance its own research out 
of sales of the special reagents 
and instruments needed by 
genetic engineering . re- 
searchers. 

But BRL's rapid expansion 
last summer left it with losses 
running at an estimated Jim 
a month by the end of last 
year. It has since reduced 
staff from 490 to 300 and 
brought it a new chairman, Mr 
Frederick Adler, a New York . 
venture capitalist who has a 
reputation as “ company doc- 
tor ” for high technology 
companies. 


Hcincken stages 
strong recovery 


BY OUR FINANCIAL ST«F 




HEINEKEN, the major ;Btnrir 
brewer, has increased iOSt uet 
profits' to -FIs 1204m (Sfcfim) 
from Ffe SS.lm in 1980, 

The Jesuit puts 
back tb-wi thin dose : raise of; 
the FIs - 125.7m''' adnfe^^ f&r i 
1979 and' represents an iutpres-_ 
sive revival from the depressed’ 
profits of 1980. 

In that year Betookest* 
whose share of the Dutch beer 
market, extends, to more than 
50 per dent, was hit hardly a 
combination of poor summer 
weather' and price - controls. 


Sate; last Tear Tree by - 12 
-qeot JSs 3.$bn. The divu 
twfcgr iidd at FIs 3.50 a 
reisiase following a final pay- 
TRent of FIs . 

: tAs-weS as -brewing. Hemeken 
4gjas major.- interests in soft 
AxbankSL anil spirits. A year 
-ago It acquired a 20 per cent 
shareholding Tomatin Distil- 
Jets, the Scottish malt dis- 
tiller. 1 

Foreign sales make up some 
thing, like two-thirds of group 
turnover. Heineken is the 
biggest beer importer- to the 
ITS. 


Eiiroc steps up dividend 


BY. WILLIAM 3MJL2JRORGE IN 

EUROC, the Swedish bulWing 
materials and. industrial group, 
surpassed its earnings forecast 
last year by raising' pre-tax 
profit from SKr 105m in 1980 
to SKr 171m ($29.7hO. Sales 
climbed by 8.6 per cent' to just 
under SKr 4bn. of, which 46 
per cent against 43 per cent 
was effected outside Sweden. 

The net Adjusted return per 


STOCKHOLM 

share is reported to be SKr 
24.70 against SKr 15.10 in. the 
previous year, and the board 
recommends a SKr 1 increase 
in dividend to SKr 9. 

The directors are also pro- 
posing to -raise capital by 
SKr 69m to SKr 415m through 
a one-for-five rights issue at 
SKr 100 a share. 


INTERNATIONAL APPOINTMENTS 


Senior posts 
at Fluor 
Corporation 

• FLUOR CORPORATION has 
made the following senior 
management changes: Mr Buck 
MJckei has been named chair- 
man of the engineering and 
construction group. He con- 
tinues as chairman and presi- 
dent of Daniel International 
Corporation, a Fluor subsidiary 
since 1977. Mr John C, Duncan 
becomes chairman of the 
natural resources group. He 
continues as chairman of St Joe 
Minerals Corporation, which was 
acquired by Fluor Corporation 
last year. Mr EL Leon Shackel- 
ford has been promoted from 
senior vice-president to presi- 
dent of Fluor Distribution Com- 
panies, Inc. Mr J. Robert Fluor 
II has been promoted from 
executive vice-president to 
president of Fluor Drilling Ser- 
vices Inc. Mr Ross A. 
McCHntock, former president of 
Fluor Drilling Services has been 
appointed chairman of that sub- 
sidiary. Mr John K. Pike moves 
from president to chairman of 
Fluor Distribution Companies. 

• SYSTEM INDUSTRIES INC. 
Milpitas. Calif., has elected Mr 


Harold O. Shattuck as president 
and chief executive officer. He 
succeeds Mr Edwin V. W. Zschau, 
who founded the company in 
1968, and who is leaving active 
management to run for the U.S. 
House of Representatives. Mr 
Zschau will remain on the board 
of System Industries as its 
chairman. Mr Shattuck comes 
from Amdahl Corp-. where, be 
was senior vice president, 
operations. 

• Mr Mark S. Coran has been 
appointed vice-president con- 
troller of the manufacturing 
division of PRATT AND 
WHITNEY. East Hartford, 
Cono. He was director of 
operations and financial planning 
for the Pratt and Whitney 
Group. 

• Mr Lawrence J. Whalen has 
been elected a corporate vice- 
president of MEDTRONIC, INC., 
Minneapolis. He has responsi- 
bility for the new businesses 
group, which consists of three 
operating divisions: medical 
data systems, neuro division and 
Medtronic Blood Systems. Inc. 
In addition, he is responsible for 
the drug administration systems 
and applied concepts resedrch 
activities. 

• FRITZSCHE DODGE AND 
OLCOTT INC.. New York, 
creators of fragrances, flavours. 


aroma chemicals and essential 
oils in the BASF Group, has 
appointed Mr Hans J. H. Reinack 
a president from April 1. He 
succeeds Mr Arthur J. Hemmin- 



Mr Hans J. H. Reinack 

ger, who is retiring. Mr Hemmin- 
ger will continue as a member 
of the board and as a consultant. 
Mr Reinack has been with BASF 
for 28 years, mostly in inter- 
national operations where he has 
served as managing director of 


BASF Peru, president of BASF 
Argentina and president of BASF 
Brasileira. one of the largest 
companies in the group. 

• Mr I. M. Sweatman has been 
appointed to the BANK OF 
MONTREAL as executive vice- 
president and general manager, 
international banking group. He 
was previously a senior executive 
with the Barclays Banking Group. 
Born and educated in England 
he joined the Barclays group in 
1972 in South Africa where he 
started what is now Barclays 
National Industrial Bank and 
where, m 1975 he became manag- 
ing director of Barclays Western 
Bank. In 1978 he moved to 
Barclays Bank International in 
London, then in New York where 
he was an executive vice-presi- 
dent at the headquarters of 
BBI’s North American operations. 
Appointed senior vice-president 
and deputy general manager, 
international banking group is 
Mr Matthew Barrett. Both Mr 
Sweatman and Mr Barrett will 
be .based in Montreal. 

• Three vice-presi dents have 
been named by CHEMTEX INC., 
New York, in a restructuring of 
its marketing department Mr 
Pedro' T. Losa becomes vice- 
president of sales: .Mr Rogih 
Yazgi has been made vice-presi- 


dent and general counsel: and 
Mr Robert M- Dillon has been 
appointed viropresident . of 
marketing. 

• Mr Mostyn Lloyd, president 
and chief executive officer, 
Barclays Bank of - Canada, has 
been appointed president and 
chief executive officer of BAR- 
CLAYS BANK OF CALIFORNIA. 
Mr Geoffrey Farrar -will succeed 
Mr Lloyd as president and chief 
executive officer, Barclays Bank 
of Canada. He is at present 
executive vicepresident and 
-director. Mr Michael Wood, an 
international finance director 
international finance division. 
Barclays Bank International head 
office, - London, -.- has been 
appointed executive, vice-presi- 
.dent and director, of -Barclays 
Bank of Canada in place of Mr 
Farrar, All three appointments 
take effect in the summer. 

• HARRIS CORPORATION has 
appointed Mr Phillip W. Farmer, 
a former general Electric execu- 
tive, to head its defence-oriented 
electronics division on Long 
Island, New York, and has named 
the former division manager, Mr 
Thomas BL O’Brien, to a newly- 
created post in Washington. The 
electronics division is the U.S. 
Navy's prime supplier of com- 


puter-controlled testing systems 
for the electronic equipment 
aboard carrier-based and shore- 
based naval aircraft Mr O’Brien’s 
post is vice-president-advanced 
programmes for the government 
systems group of Harris. 

• Hr Alastair L. Robinson has 
been named president and chief 
operating officer of BARCLAYS 
AMERICAN CORPORATION: 
Charlotte, NC. Barclays Bask 
International : seconded Mr 
Robinson to Barclays American 
Corporation in April 1981. He 
was at the time elected to the 
board and named chairman of. 
the executive committee. 

• Mr Timothy E. SnmmerfieM, 
vice-president • of CONTINEN- 
TAL ILLINOIS NATIONAL 
BANK AND TRUST COMPANY 
OF CHICAGO, has been named 
chief .foreign exchange dealer 
for Continental Bank Inter- 
national (CBI), New York, fhozn 
April 15. CBI is a wholly-owned 
subsidiary of Continental Bank. 
Mr Summerfield, who has pre- 
viously been chief foreign 
exchange trader for the London 
branch joint Continental Bank 
m 1965. Mr David HcMennmiii. 
second vice - president, ' will 
succeed Mr Summerfield as chief 
foreign exchange trader in 
London. 


AU of these Securities have been sold. This announcement appears asamatter of record only. 


U.S. $700,000,000 


General Electric Credit International N.V. 


U.S. $200,000,000 Zero Coupon Guaranteed Notes Due 1994 


UJS. $500,000,000 Zero Coupon Guaranteed Notes Due 1995 


TJnconditionaUy guaranteed by 


General Electric Credit Corporation 


MORGAN STANLEY INTERNATIONAL GOLDMAN SACBSINTEBNATlONALCOItR 


BANQUE NATI0MLE DE PARIS 


CREDIT SUISSE BIRST BOSTON LOOTED 


DEBTSCBEBANKAET1ENGESELLSCHAET SWISS bank corporation INTERNATIONAL 


UNION BANK OF SWITZERLAND ISECURTTIES) 

Limited , 


MarcM^19S2 


FT INTERNATIONAL BON D SERVICE 


• ar- 


ms. DOLLAR Citing* on 

STRAIGHTS Issued Bid Offer Jay weak Yield 

Anheuser-Busch 16V 88 100 103% 104V +OV +1V 16.43 

APS Pin. Co. 17*4 88 ... 60 105V 106V +0>, +1V 15.25 

.APS Pin. Co._16V 89 ... 75 . UK', 108 .-HP, .+2 15-B5. 

Armco O/S Fin. 16V 86 50 99^ 100*4 O +0V 15.31 

Bank Montreal 16>« 91 150 103V 103V +0V +2V 15 M 

B r. Colum. Hytf. ip, 85 100- 103V 104V +OV +1V 15.19 
Br. Colum. Mia. 17 97 54 103V 104V .0 +OV 16.Z3 

Can. NaL RbH 14V 91 1QO 96V 97V +0V +1V 15.19 

Caterpillar Fin. 16V 86 100 104 104V +0V +T, 15.08 

CFMP 16V 96 100 102V 102», +0V +0V 16 JT 

CIBC 16V 91. 100 104V 105V +OV +1V 16.6B 

Cilicoro Q/S 16V 88... 150 103V 104V -rOV -HP* 15.42 

Cities Serv.ee 17 88 ... 150 105V 106 +0V+1V 15.46 

Cons. -Bathurst 17', 88 60 102V 103V -0V 0 16.68 

Dupont O/S 14V 88 . 400 SBV 99V +0V +'1V 14.55 

Dupont O/S Cap. 0 0 90 300 35 35», -0V +QV 14.03 

EJB 16V 91 100 104V 106 +OV +2 15.71 

Gon. Elec. Credit 0.0 92 400 28V 29V +OV—OV 13.06 

Gan. Elec. Credit 0.0 93 400 25V 28V 0 -&V 12.60 

GMAC 0 ■<? Fm. 1BV 84 300 101V 102V -0V +QV 1SA6 

GMAC D S Fin. 16 88 150 99V 100V +0V +1V 16.02 

Gulf Stows O/S 17V 88 60 104V 105V +0V +1 16.10 

Japan Airlines 15V 88 50 100V 100V +0V +QV 15-05 

Nat. Blr. Canada 16V 88 40 100V 101V +QV +0V 16.81 

Nat. West 14V 91 100 98V 99V +0V +1V 14.94 

New Brunswick 17 88 60 106V 107V -f-OV +1V 15.17 

New & Lab. Hy. 173, 89 7S 104V 104V +0V +0V 16.10. 

Ohio Edison Fin. 17V 88 75 106V 106V +0V +1V 15-89 

OKG- 15V 97 50 98V 98V 0 +0V 15.95 

Ontario Hyd. 16 91 (N) 200 103V 104V +0V +1V 15.12 

Pac Gas & El 15V 89 80 101V 102V +OV +1V 15.23 

J. C. Penney Gl. 0.0 92 350 20V 21V 0 +QV 11.67 

Quebec Hydro 17V 91 150 107V 108V +0V +1V 15.56 

Quebec Prow. 15V 83... 150 97V 98V +OV +1V 15.64 

Saskatchewan 16V 88 WO 102V10ZV — OV +QV 15J56 

S rats to re tag 15V 87 ... SO 99V 100V +0V +1V 15.75 

Sweden V4V 88 150 95V 96 +OV+1V 15.51 

Swed. Ex. Cred. 16V 93 75 10TV 101V 0 +QV 16.16 . 

Texas Eastern 15V 88 75 100 100V 0 +1 15.76 

Transcanada 17V 86 ... 75 107 1Q7V +0V +0V 15.81 

Transcanada 16 89 J.. 100 .9BV 99V 0 +QV 16.15 

Winn I pas 17 86 50 106V 106V +OV +1V 15.02 

WMC Fin. 15V 88 50 96V 97V 0 +0V 16JW 

World Bank 15V 86 ... 130 104V 104V +0V +1V 1434 

World Sank 16V 88 .. 100 104V 104V +0V +1V 15.26 

Average price changes... On day +OV on week +1 

DEUTSCHE MARK Change on 

STRAIGHTS Issued Bid Offer day week Yield 

Australia 9V 91 300 98V 99V +0V +QV 9.50 

Belgelectric 11 91 100 101 V 101V -OV -OV 10.74 

CECA 10 91 120 101V 101V -OV +QV .9.74 

Coun. of Eurooe 10 91 100 100V 100V — OV +&V 8.91 

Coun. of Europe 10V 91 100 101V 102V -OV +0V 9.92 

EEC 10V 93 100 100V101V 0 +OV 9.94 

EIB 10V 91 200 102V 103V 0 +OV 3-96 

EIB 9V 88 60 99V 99V 0 +Ov 9.84 

Finland, Rap. oMOV 88 100 100V 101V +0V +0V 10.15 

Inter-American 10 91... 100 101V 102V +1 +1V 9-66 

Inter-American 10V 91 100 101V 102V +0V +0V 9-92 

Ireland 10V 86 100 100V 100V +0V +0*, 9.97 

Mexico 11 88 ICO 100V 100V -OV + OV 10.87 

Midland Jnt. Fm. 8V 90 180 93V 94V +OV +0V 9.54 

Mt- BK Dnrnk. 10>, 91 100 100V 100V +0V +QV 10,40 

Nat. Wear. 9V 92 100 100V 101 O +0V 9.74 

New Zealand 9V 89 ... 200 100V101 1 , 0 +0V 9.52 

OKB 10V 91 150 100V 101V +QV +0V S.94 

OKB 9V 86 ISO. 99V 99V 0 +0V 9JB4 

Quebec Hydro 10V 91... ISO 101V 102V +0V 0 9.89 

Swad. Ex. Cred. 10V 91 100 : 99>, 100V +0V +0V 10.27 

Venezuela IT, 91 100 99V 100V -OV 0 11.46 

World Bank 10 91 SO ,100V 10OV -2 —IV 9.86 

Average price changes... On day — OV on week +OV 

SWISS FRANC Change cm 

STRAIGHTS- ~ Issued Bid Offer day week Yield 

Aniett Transport TV 92 ■ 50. < 101V 11® +0V +0V 7.22 
Asian Dev. Bank 8 90 80 102V 102V +OV -l-OV 7.59 

‘Australia 6V 93 100 . 102V-103 -M +1V 8.41 

Balgeioctne 7V 91 80 89V 100 -OV -0», 7.61 ' 

Bell Canada 7V 93 ... .100 103V 104 +OV +OV 6.76 

Bst, db AuLoplnas,8.90 50. . .99V.100V ,+OV +1 7.99 

Danmark 7V SI 100 97V 97V 0 +0», 7.61 

Dome PeirolaunT7V 30 Kto KMVIOlV +0V -OV 7.0Z. 

EiB 7V 92 ....: 100 99V 100V +OV +1V 7.2S. 

Elat, die France 7 93 .100 BBV 89V +0V +1V 7435' 

ENEL 8 92 44, riOO 100V +0V +1V 7.96 

Gonstar 7 91 7 .100 101 101V +0V +0V 6S3 

j/s Eteam'BV si : ■.eo -'.'-ioa- 104V 0 +iy 7.86 • 

Japan Air Lines 7V 91 100 104 104V +1 +2 6.65 " 

NedBr. Gasunie.'B. 91.. -100 ,106V 107 +0V 4-OV 6-99' 

Nippon T. and T. 6V 92 KW 101V 101V +0V +1V 6.45 

OKB 7V 91 : 100 99V 99V +0«, +0V 7.35-' 

Oslo. City of 8 91 .100 .W, 105V +0V +0' 4 7.25 

Ost. Donaukrah 7 92 100 99V 9BV +0V +1V 7.09 

Saint Etienne 8V 91 ... 20 104V 104V — OV 0 7.79 

Swad. Ex. Cred. 7V 91 75 96V 97 +OV+OV 7.74 

TNT O/S Fin. 8 91 ... - 60 104V 104V + C, + T, 7.35 

Transcanada Pipe. 7 94 100 10TV 102 -MJV +1 6.78 

Unilevor NV 7V S3 ... . 100 105V 106 +DV +1 8.77 

World Bank 7 90 ...... 100 »V 99V 0 +0V 7.12 

World Bank 8. 91 .100 . J04V 104V . 0_ -OV. 7.32. 

.Avenge price changes..-;. Ori'day +0V on- week -(-OV - 

Change oh 

YEN STRAIGHTS Issued Bid* Offer day week Yield ■ 
Asian Dee. Bk. 8V 91 15 99V 100V 0 "MW, 8.30 

Australia 6V 88 20 91V 92V 0 +0V 8.27 

EIB 7V 89 \ 12 38V 89V 0 +0V 7.92 ^ 

Finland. Rsp. of 8V 87 IS 99V 100V +0V 0 &4S 

Im.-Amer. Dew. 8V 91 16 101V 102V 0 +0t- 8.51 

New Zeeland 8V 87 ... 16 . 99V H»V 0 . +0V . 837 

Average price changes... On dayO on week +DV . 


OTHBt STRAIGHTS issued 

Can. Utilities 17 90 CS 60 
CJBC 15V 89 75 

PancenacRan 16VSS .CS - 65 ^ 

Quebec 17V 87 CS 50 

Qaeb. Urban 16V 88 CS 20 
Tordom Cpn. 16V 88 CS 25 
Transalta 17 89.CS 50 

M. Bk. Dnmk. 9 91 EUA 25 

SOFTE SV 88 EUA ; L40 

U. Bk. Nwy. 9V 90 EUA 18 
Algamena Bk. 10 s * 86 FI 60 
Amfas Group 12V 86 Pi 40 
Amro Bank 12 88 FI 76 
Amro Bank 12 86 FI-.. . 60 
Heioakan NV 10 87 -FI..; 100 
Pierson 10V 88 -FI 50 

Rabobank JZ 86 FI 50 

Air France T4V.86 FFr...' 200 
- Bk. America 14V 88 FFr- 250 
Charb'nagas m 85 FFr 400 
EIB 14V US' FFr ^300 

U Redouts 14V 85 FFr -125 

OKB 14-86 TFr—.i -400 . 

Solvay et C. 14V 86 PFr- 200 
Swed. E. Cr. 14V 88. FFr 2S0 
U. Max. Sts. 14 85 FFr 160 

Acuna 14 85 £ 20 

■Beneficial 14V 90 £ 20 

BNP' 13?,' 91 £ 15' : 

CECA ISP* 88 E 20 

Citicorp O/S 13V 90 £... 50 

Fin. Ex. Cred. 13V' 86 £ 15 

Gen. Else. Co. 12VS9, £ .SO. 
Hiram Walker- 14V 86 E 25 

Prlvatba nicer T4V BB C_. 12 

-J. Rothschild 14V 90- £ - 12 - 
Royal Trustee 14 86 £L., , 12 - . 
Swed. -Ex. Cr. 13V 88‘C ' 2b' ' 

Akzo 9V 87 LuxFr. 500 

Euratom 9V 88 LuxFr ..1':. 500 
Eurafima 10V 87 LuxFr.... 500'. 
EIB 9V 88 tux Ft GOO “> 

Votuo 9V 87 LuxFr -...: BOO 


- • ' -Change om . 

Bid Offer day week Yield " 

t98 98V -MR, — OV 17.29 

tSSV 95V 16.87 

■197V : 37V+OV OV 1X09 
TIC2V <b3V 0 . 0 16.57 
two 101 ;. 0 -O 16^2 
I97V9B +0V+OVT7.13 
199V WF* +0V +1 W.W 
86V 87V 0 -OV 11.20 

78V SOV 0 +CV 12ST 
92 . S3V 0 -l-OV 10.98 
99V S9 7 . 0 +0V-10J7 
103 VI 03V 0 -OV 11^6 

. T03V 103V +OV +1V 1050 
103V 103V +0V +1V 1056 
. fl«V -37V 0 +0V 10.77 
98 88VH>V +0V 10.81 
103 103V 0 +1 10.97 

95V 96V 0 -OV 15.99 
33V 94V +0V -OV 16.66 
95 96 0 -OV 15.47 

. 90V 91V -OV 0 1*53 
91V 92V 0 -OV 17.30 
93V 94V 0 -6V.16.15 

94V 96V 0 — OV 16.54 
94.95 -DV-OVJ6.5S 
91V 92V 0 — OV 17.34 
91V 92V 0 0 16,88 

85V 88V. 0 +0V 17JJ4 
89V ««, +1V +2V 15.69 
92V 93V +0V +.1V1S.19 
93V 94V -MJV +2V14.82 
S4V 95V +1V +2V 15.61 
BOV B9V+0V: +1V 16.T1 
96V 96V +OV -HV 15.56 
90V 91V -OV -C, 18187 
.Wr 97V +0V.+2V 14.93 
- .95 . 96 ' +’OV -FOV T5 29 . 
94 V 0’ +"1V 15:G9 

92V +QV + 2 v. 11. 21 
• 89V -90V +0V +1V1239 
95V. 96V .0 +2V11J3. 
r 9TV KV +OV -MV 11:78 
91V 92V +OV -kji'.rr.TB- 


EUROBOND TURNOVER 

. ( nominal value In 

’■ eo»- 

Cedel -clear 


TJ^. $ hoods 

iAist week 

Previous week 

Other bonds 

Last week 

Previous week 


6.W4JL 16,41*5 
5376.9. 11,447.4 


1,125.0 
839 JS 


LOOOil 

SSSJt 


FLOATING RATE . 

NOTES Spread ‘Bid Offer C.dte C. cpn C.yid 

Bank of -Montreal 5V. 91:. -OV -.99V 99V 29/4 17JJ6 17 T 3 
Bar* of Tokyo 6V 91 ..... OV WOV W, 10/6 ' 

Bk. Nova Scotia 5V 93 OV 39V 1MV 29/4 

BFCE 5J. 83 -• OV ' ~ ~ 

BFCE 5V 87 1 OV 

Christiania Bk. 5V 91... *ov 
Co-Ban Eurofln 5V 91...', ip. 


wv 13.15 
:1706 17.08 
16J4 16.96 
16V T6.2S 


' S9V 100V 26/4 
. 99% WOV 27/7 
S9V 99V 5/6 -18 . 16.06 
MV -18.69 16.86 

. S7V - 98V 4/B 
98V 100V 30/6 
99V "MV 23/3 
■39V 99V 5/3 
99V 100V -9/5 

.-89V 100 29/4 

m, 99V 16/7 .15191 T5^t9 
39V T00V 30/4 17.06 17.08 
t96V 97V 25/3 17.31 T7.B7 
17.31 17^8 


n-5* 13^6 
15V 16.60 
W.pB 14.13 
13V 13^1 

13J1 13^1 
17.13 T7.17 


Dan Norsks Cratl. 5V S3 OV 

Gent) nance 5>4 92 OV 

Giro und'Bank 5V 91 ... *OV 

G2B 5V 92 40V 

In d- Bank Japan SV 88 ' OV 
Lloyds Eurofin 5V S3 ... § 0 >. 

LTCB Japan 5V 89 - OV 

Midland Int. Rn. 8 91. „ OV 
Nacionel Fm. 5V B 8 ; OV 

Nat. Bk,. Canada 5V .88 OV »V 98V24/3 

NaL West, fin; 5»j B1..;'fdV-'-e9V 99V -TS/7 * 16.19 TGJ* 

Nat. West. Fin. 5*. 92.J JOV 99V 99», 3/4 17 17.04 

Nippon Credit SV 90 ... OV: 99V 100 10/8 ’■ 16.06 16.W 

Nordic Int. Fin. 5V 91... OV 98V 'S9.. 6 / 6 - KV - 15.82 

Offshore Mining 5V.. 91 OV. 98V 99- 2/6' 13 ' 13 .tb' 

Pemax 6 91 U5T 96V; :97V 8/4 17' 17^3 

PK bah ken 6' 91* «».■ t>V' 98V 99V17/6' 14V 14^0 

Sanwa Int. Fin 5V 88 ... OV J99V 99V 24/3 17V T7JO 

S” t ! B n nd i nt „ S “«?‘ *>'.■■*%. S3V23/3 13JM -W.TO 

-sec. Pacific 5V 81 OV 96V S9V 24/S 13V 13^8 

Soclste Generals 5V 97 .0V 99 99V22/7 75V- 15^7 
.Standard Chart. 5V -91. (&;:98V iMV 18/S 1351 13 « ■ 
Sumitomo Fm. 5V *99Vh^i. , 9/8 -Mr *16^'- 

Toronto Dcmin'-n SV 92' BV 1 96V 100V. 41/8 MV -18^8 
Average pries cfiaf^^^tinlday Kcm we^ -lfpV - - 
CONVERTIBLE * CM. '' ' ' 

BONDS 

Ajinomoto 5V 96 7/81 -S33 

"Bow Vafley>*lriv ,'.-8 96 

Bridgostone TTrd 5V ' 963 ^ 2 " 470 < ’"i 
Canon 6VS5 ^. .. . _ >1 ' 

Dfliwa Sacs'. SV 96 ..;. . ! i^Sis;*» 

Fujitsu Fanuc 4V' 96 l.AOlti'sffo 
: Furtikawa Ei ac . ' 5V 96. r.T!/W-' I 330ff* 

Hanaon O/S Fih. SV 98?Wt .1$fe fW 
Cabia SV 9a 

_HiMchi Cred. Cpn. 5 36 ■T/#trnfc33 - ' 7 fc 
. Honda 1 Motor ‘S* 




_91V-+0V: 324 
» 72.00' 

»i^7V -J)V -521 

£h3v:j-;SS^ 

BB; ..-fc2- “.9.T8- i 

in 


Inchcape B 95 ^ ; ! «V 

... anti 359.'! -.fiBUrVWi' —AX. 


- Kawasaki 5V 96 8/irt 22^ 

Marul 6 96 v 7/BtJsSai 

■Minolta 'Camara 5 

Minoreo 9» 4 37 ....: ; :^-5/82^8i« 

Murate 'BV 96 '7/81 2190 

wtic bv 9B ...:.;:.-7/w-1raB 

:-NippotT Cheml-C.'S-Si 
..Nippon ■Bacxric.5V-93,^4/82-<«46 
; OrtMt Fimmca '5V 97" 0 782^567 
Sanya Electric 5 W..'^W751 - «2 
Mct..SV 98.,fTO/W ;,?iOS 

Swiss Bk. Cpn. BV 9ft... 9/» «1 

Koruenlroteu 6 90 DM „. “ 

' Mitsubishi H. 6 59- DM 


&38/ 
1B.W 
■OV. .2j» . 

8136 
10J9 
12» 


35;.96V-0V 
61- 62V +OV 
90- ‘ftl — ip, 

!”V.S;>ov T 2 j» 

+1V-J&40, 

. epv-.i&t'-iv o^f 

: B01t92V'Tr.-gJa 
87 '.BBV.—OV 3.T7 
-64V KV'-? TV- SJ3D 
71V ,73V -OV 1837 
-3V; 2.70' 
95^. 96 —OV 10.16 


'© ■nre.F.n&T.claf Tim&a^^TaBi- Reproduction ih 'whole 
or, m pan .In. any- {oria^iioitpriTnined- wiNumt witttdn'j 
consent. rDaw auppnad {by* DAfASTREAM International, 


* No information availables— 

• -previous day's price. ^ 

tOnly one market maker, .. 
supplied a price. - 1 - 

- B °NDS: The yield 

is the yield ■ to redemptiou-' -af 
-• the mid-pnee; the amount issued 
' is m miHions of currency "uiiits 
f pr Yen bonds where 
billions. . «£i£nge' on 
week- Change over price a week 
earher. 

FLOATING KATE NOTES: 
i>e nominated in dollars unless 
, otherwise; indicated. Coupon 
shown is minimum; C.dte = Date 
^next coupon becomes effective. 
^Spread =Margin above six-month 
offered; rate tt three -month 
5 above mean rate) for U.S. 
dollars. C.epn = The current 
coupon. C.yid The current 
yield. 

CONVERTIBLE BONDS: De- 
nominated in dollars unless 
otherwise indicated. Che. day = 
Oiange on day. Cnv. date = First 
S 3 • conversion into shares, 
cnv. price = Nominal amount of 
bond per share expressed in 
of . s ^ tare Jt -conversion 
rate fljeed at issue. Prem=Per- 

EflS?^ reraiQm of a* current 
raective price of acquiring 

*5® liond over the 
most recent price of the shares. 

TEe list shows the 200 latest 
mtemaGona]. bonds for wbirii 

SiCT a ^ eq 'rhi e «5 ecoadary xnarbet 
exi^s; -The-, prices over the past 

1 u ?,? lied b * : Krediet- 

. .fxanre, Credit Lyonnais: Com- 
fteuteebe Bank 
' r£, J!^? Ul l che Laudesbank 
^‘lue Generale 

" La w e?a ^ our8: SA > Banque 
Intcraationale Luxembourg; 

_-.5’, rie -d.ic tbank Luxembourg; 

r WcdMtanfl, nv ; 

Credit Com- 

lQ lernationaI 
NV; Del tec 
SeCttrtties (UK); EEC; First 
Cfecagor. Goldman Sachs- Inter- 
2? t WL5° rpo ^ cio n: Hamhrus 
• International; Kidder 

Peafiedy. International; Manufac- 
turem Hmover;. Merrill I^nch; 
Mmgaa ^Slanley International^ 

L Li e s .Company, 

1 .Royal' Bank? 

. ^omogisrothers. Internati ona^ 

“ Smuei Moi^agU Md Co.; - Scan- 
dmayfen Societe Generale 
S-tT a rTurnbulfr -Sumitomo! 
Ptn2ffloe?i^^TnatioxSal; . . S. .G. 

^°°d. Gundy. 

“XilosiD^'pnces pn March 5 









\ -h) 

“ r 'X\ 

'"«» tv 


■jS 

‘M-ilt,. , 

s 

i, "^„ ■>, 
ll l , "f;,. r ■'■ ; 
Irt. 

L* 


Jend 


K,‘ IV H 

1 in „ - 
. ,: -i ,i ,. ,u - 

^,'V> 


;• 

” 1 apuy 
\ -.v,. 


^ -'nd .. 

‘ n -i? 

-• ib,?’* 




i 

Til 

1 

t. 

"■■ M nd,-a ", 

V j v v- 

>IT», Jftgj 
* *• * ri.iir», . 

■■■•!• ;:in- 

1 ■ > *‘IILinr^ 

• ' • 

1 ITh.V 
u 

!; f* t 

•> i i.;i . 

v: 


: i i - . 

-'ifC 

*'!•! UrMris- 

• -I 1 .. 

• :•••■! -• ^ 

‘ - ’r.sS. • 


Financial Times Monday March 8 1982 


19 


FINANCIAL TIMES SURVEY 

Monday March 8 1982 


Warwickshire 

Planners realised some time ago that the county needed to encourage more jobs in its own 
towns and rural areas* Since then the decline of industry in the West Midlands has emphasised the wisdom 
of that scheme. Everything Is now being done to enconrage the growth of small companies, 


Districts of Warwickshire 




* ” 

Rugby, 



out of 
the old 
mould 

BY LORNE BARLING 


THE COUNTY of Warwickshire, 
with a population- of around 
500,000, was an -early starter in 
the now' familiar contest 
throughout the UK to develop 
the industrial base away from 
older or slowly growing manu- 
facturing activities. 

Although not in itself a major 
industrial area, the county had 
become heavily reliant on the 
West Midlands — particularly 
Coventry— for jobs and the 
creation of wealth, a fact which 
became uncomfortably evident 
when the motor industry's 
problems, began to emerge in 
the early 1970s. 

It became dear to planners 
that the county needed to 
encourage more industrial self- 
sufficiency in its own towns and 
rural areas, and ah ambitious 
development scheme was 
formulated to counter the 
threat. • 

Sadly, this foresight has not 
prevented events from overtak- 
ing the plan, and unemployment 
in -Warwickshire has now risen 
to 14J5 per cent when Coventry 
as a travei-to-work area is' 
taken into account— a figure 


well above the national average 
and only slightly below- the 
West Midlands as a whole. 

Under a programme started 
in 2978. however, the county 
. council is spending around 
£8.5m for the release and 
development of 276 acres of 
industrial land, spread around 
the districts, which it is hoped 
will help create the 32,000 jobs 
likely to be needed by 1986.- 

As Mr Jeremy Howell, 
industrial development adviser, 
points out: "All our eggs .were 
in one economic basket and the 
problems of BL and Chrysler in 
the mid-1970s showed how 
vulnerable we were. Until that 
time the county was more con- 
cerned about keeping a green 
belt round Coventry.” 

Warwickshire remains a 
largely agricultural and attrac- 
tively rural county, with a high 
level of' tourism generated 
partly by visitors to Stratford- 
on-Avon and Warwick; ' it also 
benefits in this respect from 
the' National Agricultural 
Centre at Stoneleigh and the 
N ational Exhibition Centre, 
which is on its border. 

Weaker links 

Its efforts to become more 
self-sufficient economically will 
inevitably weaken links with 
the. industrial Midlands, and the 
construction of the country's 
last major motorway, the M40. 
will bisect the county and 
provide faster links with the 
South-East. The already large 
population movement between 
the south of the county and the 
London area will therefore 
increase, planners believe. 

These factors will almost 
certainly mean that the 
southern half of the county will 
benefit from the' more rapid 
industrial development in the 


southern half of Britain, par- 
ticularly in the much sought- 
after high technology field. 

In the north, however, 
districts such as Nuneaion, Bed- 
worth and Rugby are far more 
integrated into Midlands 
industry and while well served 
by the AI1/M6. desperately 
need a new road link to the 
growing east coast ports and 
better access to the rest of 
Europe. Efforts are now being 
made to attract EEC funds for 
this project. 

The Industrial structure' of 
die county, with nearly 70 per 
cent of companies employing 
fewer than 25 workers, indicates 
that the council has correctly 
judged one priority to be the 
encouragement of small 
company growth. 

Until recently there had been 
little land available for indus- 
trial development, particularly 
in the smaller towns, and a 
high proportion of industry, 
mainly mechanical engineering, 
remains concentrated in the 
northern areas. 

According to a recent survey 
by Market Location of Learning- 
ton Spa. the county also has 
douhle the average UK concen- 
tration of motor industry con- 
cerns within its boundaries, 
although this sector' only 
accounts for 3.6 per cent of 
the total number of companies. 

Major growth in recent years 
has been in transport and ware- 
housing, activities once frowned 
on by industrial developers 
since they -created compara- 
tively few jobs but now 
encouraged in Warwickshire, 
where a number of large 
depots and trans-shipment 
points have boosted local 
employment. 

The main activity in the 
area, however, remains 


mechanical and electrical 
engineering, which is the main 
business of 23 per cent of 
companies, while there is a 
higher than average concen- 
tration of companies concerned 
with various types of metal 
working and processing. 


Rapid growth 


One of the most rapidly 
growing districts of the county 
has been around Nuneaton and 
Bedworth, where more than 
200 companies have moved to 
new industrial estates in the 
past 10 years, and the popula- 
tion is expected to rise rapidly 
from its present level of around 

120.000 people, partly as a 
result of migration from nearby 
Coventry. Around 30,000 
Warwickshire residents now 
work daily in .Coventry. 

Although employment in the 
Nuneaton area has grown 
rapidly in recent years as 
engineering has taken over 
from traditional activities such 
as mining and textiles, many 
of the .smaller concerns making 
motor industry components 
have suffered and unemploy- 
ment has risen to 16 per. cent 
the highest in the county. Most 
companies in the area are 
small and some consolation is 
to be found in their adapt- 
ability. . 

Tbe district of Rugby is 
dominated by the town, which 
has a population of nearly 

90.000 people and is a major 
road and rail junction. Elec- 
trical engineering is the main- 
stay of the local economy and 
provides around a third of all 
jobs, but employment has 
declined markedly in the past 
decade as a result of uncertain 
markets and rising productivity. 

Numbers employed in engin- 


eering as a whole have halved 
since the early 1960s. although 
there has been compensation 
from a rise in service sector 
employment. which now 
accounts for well over half of 
total employment The town has 
seen a 35 per cent increase in 
-unemployment over the past 12 
months to nearly 13 per cent of 
tbe workforce. 

Tbe district of Warwick, 
which includes the town itself, 
Kenilworth and Leamington 
Spa, has a population of around 

130,000 which has rise n by 
nearly 25 per cent since 1960. 
Industrial development has also 
been rapid, however, particu- 
larly around Warwick, where 
around £2m is now being in- 
vested in a Science Park adjoin- 
ing Warwick University. 

Steady stream 

This is expected to attract a 
steady stream of new industry 
in tiie next decade, since 24 
acres have been set aside* 
adjacent to the campus for high 
technology companies which be- 
lieve they can benefit from the 
university’s scientific resources. 
This will include an “in- 
cubator ” building for very 
small concerns, which is ex- 
pected to he funded by around 
£lm in aid from one of the 
clearing banks. 

Significantly, industries in 
the area such as vehicle com- 
ponents, mechanical engineering 
and other manufacturing have 
held up reasonably well during 
the recession in terms of labour 
demand, and unemployment at 
10.4 per cent is well below the 
West Midlands average. How- 
ever, the district Is notable for 
its hdgh proportion of people in 
professional and managerial 
occupations, accounting for 
nearly 40 per cent of jobs. 


many of whom commute to 
Coventry. 

North Warwickshire borders 
on tbe urban areas of Birming- 
ham, Coventry and Nuneaton, 
and has two main employment 
areas in Atherstoae and Coles- 
hill, but around a third of 
residents travel to work else- 
where. Mining and quarrying 
still contribute considerably to 
the local economy, while ware- 
housing and transport have be- 
come major activities. 

Tbe southern area of tbe 
county, the district around 
Stratford - on - Avon. covers 
almost half of Warwickshire 
but its population constitutes 
only about 20 per cent of the 
county total. The county struc- 
ture plan has identified eight 
“ key settlements ” in tbe rural 
areas where small industrial 
areas will meet limited demand. 

Stratford is the focal point 
of the county’s tourist industry, 
estimated to generate annual 
revenues of between £S5m and 
£40m. Warwick Castle is an- 
other major attraction, while 
tbe Royal Show at Stoneleigh 
also attracts a large number of 
visitors. 

Although industrial employ- 
ment in Stratford has increased 
steadily, the town has suffered 
a 53 per cent increase in unem- 
ployment in the past 12 months. 
This is attributed partly to poor 
tourist figures, particularly a 
fall in visitors from abroad 
because of currency fluctuations. 

Overall, the county has 
weathered the recession slightly 
better than the West Midlands, 
as a whole and in the medium- 
term its prospects for economic 
growth appear to be favour- 
able, largely as a result of wise 
planning and favourable loca- 
tion. 


.a Warwick Uamintfon 

7 ; r*T , ^ v . Ft---- 

in-Arden : Warwick^ ' *'* L‘‘ - 

V « J * w“. 


ft *• 

Stratford - 
. s upon- Avon 

Gaydon . 

Stratford - 

' ^Halford 


STy. 

iiirfnti . |f 


Warwickshire has been divided 
into five industrial 
areas centred on North 
Warwickshire, Nuneaton, Rugby, 
Warwick and Stratford-on-Avon 


BASIC STATISTICS 

Area: (Sq Km) 1,981 

Population Total: 473,620 

(1981) Towns: 278,147 

Rural: 195,473 
% change 1961-71 +17.8 
1971-81 + 4.0 

Unemployment (Dec 1981) 
Male: 13,568 

Female: 6,093 
Total: 19,661 


CONTENTS 


County schemes to provide 
more jobs II 

Industrial development: 
plan for s maller centres II 

Communications : road and 
rail links near 


Developments in 
commercial property 


Warwick University's plan 
for sdenee park 


JU 

IV 


n iwm 

£» 

< iiirl da 

' i mb: 


• i.-.i. Li*; 


. ■.? 

■ ,jw: 

. •• 

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. i 




At Automotive Products, we're particularly proud 
of our latest breakthrough. 

It's a fully automatic gearbox offering the 
economy of a manual Plus huge advantages over a con- 
ventional automatic. 

Its lighter cheaper to make and install, and cuts 
power losses by up to 75 per cent 

(Technical note: The box uses microprocessor 
control and twin clutches with any number of manual 
type gears.) 

When it's installed in production cars it'll make 
driving and servicing both easier and cheaper titan on 
cars using conventional automatic transmission. Our 
new baby isn’t just a gimmick, but a highly competitive 
innovation that couldwell become the standard gearbox 
of the future. 

Audit's typical of the advanced products develop- 
ed by our Leamington Spa Division. 

Our award-winning DST dutchis another shining 
example. It offers a spectacular 30 per cent weight 
saving by reducing the number of components from 33 
to 14 -which means better performance, longer life, and 
lower cost 

But our talents stretch 
far beyond technical innov- 
ation alone 

Wre one of Europe's 

largest original equipment Leamington Spa. Warwickshire. England 

parts manufacturers, supply- '*'*»««*****»*>- 
ing parts for many of the world's famous marques. (Not 
to mention every winning Formula One car since 1968.) 

And our spares range is famous in its own right: 
-Lockheed brakes, steering and suspension, Borg and 
Beck clutches, AP fitters and AP exhaust systems. 

Apart from our 11 British factories, we have manu- 
facturing facilities in France, the United States, Italy, 
HollmcfSouth Africa and Australia. As well-as a world- 
wideparts distribution service. %t we employ over 5,000 
people at Leamington Spa alone. 
Sonextrimeyoutetalkingautomotive engine ering mak p 

sure you talk to Automotive 
Products. 

Because well always make 
changes for the better 




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20 


WARWICKSHIRE n 


Financial Times Monday March 8 19§2 


Ambitious scheme to restore jobs 


WARWICKSHIRE, like other 
parts of the country, has ex* 
perienced industrial contraction 
by many of its larger companies 
and planners have had little 
option but to pin their hopes 
for economic growth on the ex- 
pansion of small and medium- 
sized concerns, and on incoming 
industry. 

The county has only a hand- 
ful of companies employing 
more than 1,000 people, but is 
nevertheless heavily reliant 
upon major manufacturing con- 
cerns in the West Midlands, 
where unemployment has risen 
by 34 per cent in the past year. 
The figure for the county and 
Coventry was 26 per cent, in- 
dicating that its high propor- 
tion of smaller, more adaptable 
companies has been of value. 

However, it is accepted that 
these companies are also slow 
to increase their work forces, 
with the result that a major loss 
of jobs, such as the steady cut- 
back by GEC in Rugby in recent 
years, will take years to re- 
place. 

The county authorities have 
therefore embarked on an am- 
bitious industrial development 
scheme, outlined recently at an 
exhibition held at the House of 
Commons, which is successfully 
providing large areas of land 
for industrial use. 

Although competition for new 
industry in the UK is inf?" 1 ?'?, 
planners believe Warwickshire 
is well placed to attract more 
than the national average, since 
it has the advantage of h<*ing 
rural but close to the indus- 
trial Midlands. 

The largest employer in the 
county remains GEC. eight of 
whose companies at Rugby 


employ around 7,500 people, 
while Rugby Portland Cement 
and Smith’s Industries, also at 
Rugby, make a major contribu- 
tion to the local economy. 

In Warwick and Leamington, 
the major employer is Automo- 
tive Products, with a work 
force of around 6.000. while 
Ford’s foundry and component 
activities there sustain work for 
arouffd 2.000 people. IBM. 
which more recently located 
its computer service head- 
quarters in the district, has also 
made a major contribution to 
employment 

Leamington is the national 
headquarters of the Quinton 
Hazel group, the country's 
largest independent manufac- 
turer of automotive components 
and replacements parts. 
Although only about 50 people 
are employed there, it is the 
centre of operations for the 
chief executives of the various 
operating companies. 

Quinton Hazel also employs 
350 people at Nuneaton, where 
it has its main national distribu- 
tion centre. The company, 
owned by Burma h Oil, was re- 
cently put up for sale, but this 
is unlikely to have any effect on 
future employment levels, the 
company said. 

Other notable employers are 
British Aero Components. 
English Rose Kitchens. Massey- 
Ferguson. Smedley H.P. Foods 
and Potterton International, the 
central heating appliance manu- 
facturer. There has recently 
been a significant increase in 
the number of service industry 
companies moving to the two 
towns. 

The area has slowly become 
less dependent upon Coventry' 



In this age of ever-rising travel and transport costs, the 
Importance of RUGBY - just about in the centre of England - is of 
great economic significance for firms that have to maintain contact 
with the whole of the country. 

So it's good news that additional land is available 
for industrial and commercial development. 

Rugby's town centre is a mere 5-10 minutes from. three 
motorways and other trunk roads. Inter-City speeds to major cities 
like Birmingham, Bristol, Manchester, Leeds, Glasgow - and to 
London in under an hour. An international airport? Just thirty 
minutes away. 

Excellent factory sites, plentiful and varied housing, a friendly 
atmosphere, beautiful surrounding scenery . . . Rugby has them all 
- and more. We have prepared a helpful checklist of its 
advantages, and would like to send you a copy. Study it . . . and 
you’ll realise just how much there is in favour of Rugby, where 
you’re not cut off in a corner of the country. 



In the Middle where it Matters 

For your checklist or any other information please telephone 
Alan Wright on Rugby 107881 77177 or write to the Chief Executive 
Rugby Borough Council, Dept. FT, Town Hall, Rugby, CV21 2LB. 



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PEDERSHAAB LIMITED 

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Stratford-upon-Avon 
Warwickshire 
England CV37 9PR 

Member of FLS Group of Companies 



Tel. 0789 67171 


Telex 311385 


as a place of work, partly be- 
cause of the diversification of 
local industry, which is comple- 
mented by the service jobs 
created by half a million visi- 
tors a year to Warwick Castle, 
where * amenities and tourist 
attractions are now being im- 
proved. 

Industry in Bedworth and 
Nuneaton is still closely tied 9? 
motor manufacturing and the 
largest employer, with a work 
force of more than 1,000 is 
Sterling Metals, a subsidiary of 
Birmid Qualcast, while Clark- 
son International Tools, which 
recently took over part of 
Alfred Herbert’s machine toot 
interest, is a major local com- 
pany. 

Arrival 

Although some textile and 
hosiery work is still carried on 
in and around Nuneaton, this 
traditional industry has con- 
tracted rapidly in recent times, 
and coal min ing is declining in 
prominence. A recent arrival in 
the area is Wilkinson Transport, 
which has created around 300 
new jobs with the establish- 
ment of a major sorting centre. 

The largest employer in the 
Nuneaton and Bedworth district 
is the National Coal Board, 
which has three coUieries pro- 
viding around 2.500 jobs, 
although there have been some 
layoffs recently. The Central 
Electricity Generating Board's 
two power stations also provides 
a large number of jobs. 

A number of medium-sized 
employers, each with around 
300 people, are established in 
tlie district. These include 3M, 
the abrasives company, British 


Home Stores national distribu- 
tion centre, Thomas Nationwide 
Transport and the Kingsbury 
oil terminal, which is jointly 
operated by a number of major 
oil companies. 

In the Stratford-on-Avon 
area, two of the largest em- 
ployers are professional and 
white collar epneems, TDC, the 
design-and-buiid construction 
company, and the National Far- 
mers Union Mutual Insurance 
Society. IDC, which employs 
□early 1,000 people in total, 
normally has around 400 work- 
ing at its Stratford head- 
quarters — around 90 per cent 
of whom are professionally 
qualified. 

NFU Insurance, which in- 
cludes its non-fanning business 
subsidiary Avon Insurance, is at 
present housed in offices in the 
town centre, but will move in 
1984 to a new office block on 
the outskirts. The company said 
it planned to accommodate 430 
employees in the new building. 

N. C. Joseph, manufacturers 
of aluminium and other metal 
goods, is another of the larger 
companies in Stratford, which 
has a fair number of motor 
component companies and 
metal processors. 

The county therefore has a 
wide spread of industry, rang- 
ing from coal mining and heavy 
engineering in the north, to very 
small companies in the less 
populous south, all of which 
~»nst be catered for in thr 
count)’ council's development 
plan. 

The County Council is now- 
extending its activities beyond 
provision of lands and promo- 
tional work to further the de- 
velopment of industry, and has 


agreed to provide financial 
support for the Warwick Uni- 
versity science park scheme. 
This is regarded as an import- 
ant step in encouraging small, 
high technology companies so 
badly needed to replace older 
industries. 

A number of companies 

which have moved to Warwick- 
shire in recent years believe 
they have benefited consider- 
ably from the well-qualified 
labour force in lb* area, due 
largely to the development of 
engineering skills in and 
around Coventry. 

However, like other parts of 
the West Midlands, there is 
likely to be an increasing 
problem in finding skilled 
labour when the economy picks 
up. 

A further problem is that a 
high proportion Of those 
unemployed are young people 
who have not had the chance 
to develop skills, and national 
training programmes 3re there- 
fore being watched with 
interest. 

There is also concern in 
Warwickshire that regional aid 
to other parts of the country 
is slowing local growth. Mr 
John Vereker, vice-chairman of 
the council and a member of 
the Industrial and Employ- 
ment Development panel, said: 
“The current nonsense called 
regional policy, under which 
the already depressed Midlands 
are having to subsidise com- 
petitors in depressed regions, 
means that public money is 
available to attract industry 
away from areas identified by 
market forces.” 

Lome Barling 



Above: Attleborough Fields Industrial Estate at 

10 acres are available. Below: Among constrmdum equipment makers^ uen] ora, 
operating on the newWedgknock industrial estate, \\ armcK. 




Industrial sites form 
a key element 


■Bo?* 1 


Grundig's new distribution centre at Rugby 


Smaller centres take 
fresh heart 


AS THE TAIL LIGHT of 
employment in the motor indus- 
try began lu recede into the 
distance Warwickshire County 
Council and the district coun- 
cils set about establishing 
alternative employ-men'. The 
handling of the country's £8.5m 
revolving fund is encouragingly 
supple and imaginative, and 
while inevitably directed 
towards the larger towns like 
Nuneaton and Rugby where 
problems are more acute, has 
also raised new hopes and 
expectations in smaller places 
like Old Arley, near Coventry 
and Bideford-on-Avon. 

Coventry, which is in the 
West Midlands, is not pan of 
the strategy; rather is it the 
chief reason for the strategy’s 
existence. Many of those who 
used to work in Coventry’s car. 
tractor, machine tool and 
vehicle component factories live 
In the towns and villages 
administered by the county 
council, and have added to the 
problems of looking after those 
who both live and work in them, 
like the workers at Automotive 
Products and the Ford tractor 
foundry in Leamington Spa. 

In response the county 
council have moved quickly 
into the small factory unit 
market. In Warwickshire, as 
elsewhere, it is ihe mo*t 
rapidly expanding segment of 
the market, with most units 
finding tenants unusually 
quickly. 

One or two organisations, 
among them Nuneaton Business 
Developments, are refurbishing 
disused factories. The company 
is basically in engineering and 
needed lf.rger premises, which 
It found in Fife Street, Nun- 
eaton. Since last June it has 
created 28 small other units 
and is finishing the last two at 
an average cost of well under 
£1,000, fully equipped with 
services. This is, of course, 
much cheaper than' building on 
a new site, and reduces rents 
to £141.50 per square foot per 
week, paid a month in advance. 

A considerable variety of 
activities covers machine tools, 
cutter grinding, double glazing 
and. in the former drawing 
office winch has a parquet floor, 
a school of dancing is flourish- 
ing. ** We have a waiting list of 
tenants." says Mr Derek Smith, 
a partner in Nuneaton Business 
Developments. He is now look- 
ing at other local factories 
capable of similar treatment. 

In a rather more trendy 
fashion Wellesbourne House, 
the local manor, has been re- 
furbished as a communal office 
block for those on the 12-acre 
estate, while the former work- 


house. at Shipston-on^Stour, is 
now the headquarters of 
Renault’s UK agricultural 
division. It is handily placed for 
the National Agricultural 
Centre at Stoneleigh. four miles 
from Leamington Spa. 

Nuneaton was, in fact the 
first industiral site, of 44 acres, 
to be developed by the in- 
dustrial promotion unit of the 
county planning department, 
and it has gone well There are 
five other main sites, in the 
county town itself, in nearby 
Leamington Spa, and in 
Bedworth. Rugby and Heath- 
cote. This last forms the 
southern point of a triangle with 
Warwick and Leamington Spa 
and will benefit substantially 
when the M40 extension is com- 
pleted. The proposed line runs 
past the site. The £lm cost of 
opening up the first 50 acres 
and providing services has 
already been recovered and sites 
on the 30 acres still remaining 
are expected to find tenants 
without much difficulty. 

Heath cote is the most recent 
industrial estate in a programme 
most of which has been pushed 
through since the formation of 
the industrial promotion unit 
three years ago, and which has 
been carefully designed to pro- 
vide a balance of jobs through- 
out the region. 

The unit has. of course, drawn 
on the experience of towns 
which, like Rugby, have had to 
develop their own strategies. 
Rugby was a major centre of 
heavy electrical engineering for 
the UK and overseas power, 
steel and other industries. The 
steady contraction of this sector 
threw up early problems in 
finding alternative employment 

Solutions 

It was a community problem 
and community solutions were 
sought, like the formation of 
Rugby Commercial Develop- 
ment Committee, This 
represents the borough council, 
the Chamber of Commerce, and 
the trades council and has done 
much to help bring new 
industrial and commercial 
enterprises to the early estates 
at Paynes Lane, Somers Row 
and Glebe farm. Since then, in 
tandem with the county, two 
more estates have sprung up— 
Swift Valley and Arches Lane 
to the north of the town, which 
has extremely good road and 
rail communications. Swift 
Valley has begun to find 
tenants and Arches Lane will 
be marketed in the spring. A 
long history of excellent 
industrial relations has been a 
significant factor in attracting 
customers. 

Rugby has been more actively 


promoting itself than other 
Warwickshire towns and while 
this has been confined to the 
UK tne results are to be seen 
in the companies that have 
found a new home in the 
district. Beecham Products, 
with some 200 employees 
making soft drinks, is the 
biggest of the new employers. 
Grundig is one of those which 
have moved out of more 
congested areas like London, 
while the Common Market is 
represented by Hahn and Kolb, 
an Italian machine tool maker, 
Cyclam. a French company 
-making vehicle dashboards, 
Sbowerlux, a Swiss shower 
manufacturer and Trelleborg, a 
Swedish belting company. A 
margarine and edible oil 
concern will employ another 60 
when it gets going. 

It is a measure of the 
inherent advantages of the 
district and the success of a 
collective approach that unem- 
ployment now is fractionally 
below the national average. It 
could even decline further if 
one of the traditional employers 
goes into robotics. But it has 
been a male oriented revivaL 
Work for women is still reeded. 

The more rural areas have 
not been neglected. For 
instance, Bideford-on-Avon. 
down in the south-west corner 
of the county, has an industrial 
estate of more than five acres 
being developed to the north of 
the riverside village. 

Between Bideford-on-Avon and 
Rugby, on the eastern 
boundary, lies Stratford-on- 
Avon which, though better 
known as a tourist centre 
nevertheless has a surprising 
variety of industry from con- 
struction and textiles to canning 
and technical model-making.’ 

The weakening tourist trade 
makes manufacturing and sup-, 
porting industries of greater 
importance to the local 
economy. Three developments 
are proceeding. Two of these, 
of 10 and six acres respectively 
are alongside the main A34 and 
the third tidies up an environ- 
mental eyesore around the old. 
gas works. All are within com- 
fortable walking distance of the 
town centre. 

Numerically most of the sites 
in the county are of the nursery 
type and the way in which they 
are being snapped up . is 
indicative of the keenness of 
individuals and small groups to 
make their own way in ’.the 
world. Their ambitions and their 
quest for knowledge of how to 
go about things are being 
catered for in a variety of ways, 
such as an enterprise trust now 
being set up. 

Peter Cartwright 


THE BASIS of industrial 
development in Warwickshire is 
the provision of a large quantity 
of high quality industrial land 
Over a seven-year period ending 
in 1986 which it is hoped will 
create a total of about 32,000 
new jobs. 

It is estimated by the County 
Council, which is responsible for 
overseeing the plan with the co- 
operation of district councils, 
that 20.000 of these -new jobs 
will be needed to . meet the 
county’s .population increase,- 
while a further 12.000 are 
required to replace jobs being 
lost in other industries. 

The latest estimate of the cost 
of the programme is' £8.47m. '. 
mainly in relation to land 
acoiiisition. hot it is designed ; 
to be self-financing and a net 
profit on the purchase and sub- 
sequent sale of land (with in- 
frastructure) is expected to be 
about £4.7m at the end of the 
sev**n-year period. 

For a number of years the 
county rounril has been follow- 
ing a poliev of disposine of land 
and • buildings which are 
surplus to requirements, and the 
proceeds of these sales have 
been credited to' a pool which 
is now being, tapped for the 
develooment of industrial 
estates. 

Proceeds 

“ As time goes on, proceeds 
from the sale of the industrial 
sites can provide a source of 
capital for the Tatter stages of 
the development programme 
and contribute to rolling 
development.” the council said. 

Some of the earlier protects 
used funds and legislation which • 
are now no longer accessible to 
local authorities, notably the 
purchase of land under the Com-’ 
mun'tv Land Act net of 
dev*lopment land tax. 

The council added that the 
programme was notable in that 
no loan finance had been neces- 
sary and in spite of the reces- 
sion, sites were bafng siSd 
successfully. - 

Around 17,000 of the new 
jobs created arc «?xpectefi to be 
on line wrenred industrial s*fes 
on estates located »n thp main 
towns and “ kev settlements " of 
Warwickshire identified' in ihe 
county’s structure plan. These 
will cover a total of 236' .acres 
and will pass through local 
authority ownership to com- 
panies and developers, since' it 
is county policy not to retain 
anv leased land. 

However, this represents less 
than half the total acreage of- 
land identified by the county 
council for Industrial use. before 
the end of the decade, and some 
of this has also been made avail- 
able recently. 

Land on. the nine estates, of 
which SO acres has already been 
sold, will provide. “a spectrum 
of opportuni ties on a wide ranee 
of freehold sites for direct users 
and developers to build fats 
tories from BOO sq.ft for owner 
occupation or rental/’, the coun- 
cil said. 

It is estimated, that thisU 
initiative by the county will pro- 
vide around 8.500. jobs In 1986 
and the remaining 1L500 required 
are expected to come through 

private development themes. 

All the schemes carried, out by 
the council have -been under- 
taken where, for various 
vide around 8-500 jobs by 1986 
reasons,, private -.sector initia- 
tives would not have released 
land or provided the variety of 
opportunities necessary^ ; it -was' 

pointed out " 


Overall industrial promotion 
policies of the county and dis- 
trict councils are co-ordinated 
through the Warwickshire indus- 
trial and employment develop- 
ment panel, and no special 
powers have been required to 
Implement policies. 

These policies have been 
designed to complement rather 
than duplicate private sector 
activity. In cases where a local 
authority : - initiative liaS been 
needed: merely to assemble the 
land and make it available, it 
has been or will be sold directly 
to private development com- 
panies. " - ■ 

;A typical case of successful 
intervention by the county coun- 
cil was . at Leamington. - where 
some shortages of industrial 
land had been experienced. A 
50-acre plot, jointly owned' by 
the district council, was there- 
fore - brought forward . for 
development and subsequently 
formed the Heatbcote industrial 
estate. 

The local, authorities are now 
releasing the land in two phases 
for a variety of purposes in- 
cluding a 10-acre development 
site, 10' acres for direct users 
and a 9 acre campus site, also 
fora direct user. Some quarter- 
acre plots are also available.. 

“We decided not to sell to 
one developer because we 
wanted to ensure that there was 
a spread, of industrial activity 
rather, than a few large fac- 
tories which the. pension funds 
tend to prefer.”- said Mr Jeremy 
Howell, the council's, industrial 
adviser, • \ 

The other major industrial 
developments are Attleborough 
Fields Industrial Estate at Nun- 
eaton (44 acres). Swift. Valley 
Industrial Estate at Rugby (20 
acres .with, options to. -expand 
to 60 acres ! , . Holly Lane Indus- 
trial Estates -at Atberston (30 
acres plus 40 acres of private 
land). Shxpston House and Ship- 
ston-ou-Stour (4 acres) and.'. 7.8 


acres at Birmingham Road, 
Stratford-on-Avon. 

At Bideford-on-Avon. 11 acres 
are available, Southam has 9. 
acres at Westfield Road and The 
Arches, . Rugby, provides a 
further 20. acres. Most of this 
land is owned solely by the 
county council, but some is. in 
joint ownership with district 
councils. 

. The flexibility pf the pro- 
gramme is well illustrated by 
the Rugby scheme, where 20 
acres of derlict land has been 
assembled into a site from six 
ownerships for a nominal sura. 
The county council is now 
clearing the site nf an old rail- 
way viadict, providing a flood 
control system and improved 
road system. 

When the project is- com- 
pleted. the land will either be 
re-purebased by the original 
owners at a price which will 
cover .the cost of the improve- 
ment works, or sold by the 
council, sharing the profit with 
thp owners. 

This type of scheme has con- 
tributed to Warwickshire’s suc- 
cess in being the county with 
the highest receipts in the UK 
from the sale of assets. 

Inflow 

One of the largest estates, 
Attleborough Fields at Nun- 
eaton, has had a steady inflow 
nf new companies and more than. 
22 -■acres have been taken up 
. For a .county which in the 
early 1970s was uncommitted to 
any programme ■ of industrial 
^development, Warwickshire has 
come a long - way. and job 
creation - through this pro- 
gramme is broadly on. course, 
dPSDite the problems of reces- 
sion. However, it now remains, 
the task of private industry to 
take lip the space provided, 
assuming that economic con- 
ditions favour expansion. 

- Lome Barling 


A Complete Technical Publications 
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JpiNDUSTRY SSTVICES INTERNATIOM 

Allienc* House, AbbarGafe Ngaeton, - r/nKria i-ir 

346235/7 






21 



Financial Times Monday March S 1982 


WARWICKSHIRE IH 


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:Bn-mingham\ Mg enen8w 


is easy 
to main 
arteries 

BY PETER CARTWRIGHT 


AMONG THE MAJOR attrac- 
tions that kayo persuaded 
international companies to 
settle In Warwickshire Is the 
convenience with which the 
main industrial arteries can 
he reached from most towns. 
Indeed, the siting of the 
larger industrial estates has 
been determined with this 
prominently in mind. 

The concentration of motor- 
ways and railways to the 
north and east of the county 
has inevitably dictated that 
much of the early develop- 
ment should he in those areas. 
'More recent developments, 
like that at Heathcote, Just 
to the south-east of the 
coimty town, anticipate the 
construction of farther motor- 
ways and by-passes although 
at the present rate or progress 
they look like being com- 
pleted in the second half of 
the 1980s "or early 1990s, 
rather than in the first half of 
this decade. 

Rugby is one. of the more 
,>ntstanding examples of how 
well served- the county is by 
existing communications. In 
one direction London can 
soon be reached by rail or 
the BEL In the opposite direc- 
tion both, motorways and 
railways open up the Midlands 
to the east as -well as to 
the west. The Swift Valley 
industrial estate to the north 
of Rugby Is less than two 
miles by dual carriageway 
from junction one of the M6; 
or going towards London, 
which is 88 miles away, junc- 
tion 19 and 20 on the Ml are 
four and five miles away 
respectively. On the' other 
hand, Grim dig chose Rugby 
for its UK distribution centre 
because it wanted to use the 
railway system. 

Nuneaton, lying between 
the A5 and Ml (to which it 
is joined by double carriage- 
way) is the headquarters of 
Wilkinsons Transport one of 
the conn try’s largest trans- 
port operators, while further 
to the. east Atherstone, 
through which the A5 passes, 
has become a main -dlstribu 1 
tiou centre for British Home 
.. Stores.-. 

It is there that employment 


mm 




Eastern 




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"Hwheeta 1 
'Industrial , 
. Esuza I 




a hS. Bristol 
L South Wans 


9 mites 1 


is being given a boost by 
Thomas Nationwide Trans- 
port (TNT), the big 
Australian-based group. It is 
wwmiWating its UK parcels 
service on ah' 18-acre site at 
the 30-acre Holly Lane estate, 
convenient to the London- 
er lasgow railway line, -the A 5, 
M69 to Leicester and the Ml 
and, when ready, the H42 link 
with the north and south. The 
TNT sorting and redistribu- 
tion depot will employ about 
300 when fully operational in 
about three months. 

This northern part of the 
county, which skirts Coventry 
on three sides— Coventry is in 
the West Midlands metro- 
politan county — is already 
fairly heavily industrialised. 
The central _ and south 
western areas win be opened 
np for development with the 
building of the M40. On its 
northwards progress from 
London this at present stops 
at Waterstoek, some 10 miles 
east of Oxford. The proposed 
iii» thus towards Banbury 
and then to the Longbridge 
roundabout just south of 
Warwick, where it meets the 
city's by-passl This will make 
a triangle with the Broms- 
grove section of the M42, as. 

yet unbuilt. Leamington’s 
southern link road will even- 
tually connect with the H40. 

The M40 will provide an 


(ropasad 

M 40 ues 


HEC NatioiWEd*SaonCBntrB 
MSC WMWAgrcufcunriCfencrB 

Motorways I Dual C m rnyu w a g . 




CaBstuyl t 
Oxford & \ 


alternative route to London 
and relieve the congested ML 
Wheu the M42 to Notting- 
ham is completed and 

connections made to other 
sections of the motorway like 
the M5 to the south west, the 
central and southern, parts of 
Warwickshire are likely to 
become even more attractive 
to Industry and commuters. 
For the time being, however, 
inquiries have to be held into 
key sections of motorway 
routes . and strong objections 
by individuals and action 
groups have still to be heard. 

The M40, when it arrives in 
the area, will be of great 
importance to Stratford-upon- 
Avon, a prime tourist centre 
that in more normal times 
tends to get inundated by 
people and ears and coaches, 
all of which have to go at 
present by the original 
narrow Oopton bridge over 
the Avon. .A northern by-pass 
when completed will relieve 
the town centre of some of 
this traffic. 

So In two ways, industrial 
and tourist, the proposed new 
roads and motorways will 
open up new opportunities by 
easing traffic problems. Top 
tourist attractions like Shake- 
speare’s birthplace, Warwick 
and Kenilworth castles and 
the Cotswolds will welcome 
the relief. 


Manufacturing industry expansion could benefit commercial property 

Higher demand for offices likely 


tttf. INTEREST being shown Union and Avon ^ Insurance 
by manufacturing industry In group, which will become its 
Warwickshire in the County beadqUArters. S 

Council’s encouragement of premises town itsell. ^ 

factory development, is likely to The hmldmg, being 
lead to higher demand for office structed by Tumff of Wannck, 
g~ ^ Planners JjM 

^However; the recentrestraints «g» .*“<»£, * 

on office development imposed * * te r SSL and staff faci- 


.. hA' ■ 








by local authorities and lack of 
strong demand in most areas 
has meant that, few new office 


computer centre and staff faci- 
lities. Initial objections to the 
building, on the grounds that 




sat*- 

tWBK'z: 




1 1 


has meant thatfew new omce _ t WQuld ^ out o£ keeping with 
preamses bgye been, constructed . — jra T location, have been 


in the county in the past few 
years. 

There have nevertheless been 
some major projects under- 
taken in the county, notably the 
Chesterfield Properties retail 
centre in Rugby, which has pro- 
vided premises for two large 
stores, Sainsbury’s and Inter- 
national Stores, and. 32 smaller 
units. 


its rural location, have been 
overcome. 

In Leamington, a notable de- 
velopment recently has beeD the . „ - — , __ „ _ . __™_ 

T * construction of a 17,000 sq ft -1-1. 1 -J%3, l ]&: U ,-S " W ' Tlf3 

J .® Regency-style building in J r->- ~ l \ ~ > »>V ! - • : ag'£ : S % 5 - 1 1 

Clarendon Square, which won a \ ^ ^ 

ip- devdSped^ by European’ Ferries ~~ , i ' ii T'| i , • 1 :l I .. . - — ----- ■ ' 

>W Covenfey compan^^^™’ “ Clarendon House, the recently-completed Regency-style ^buildino i» 

ge Mr John Shuttleworth of Clarendon Sauare icon an architectural award. It provides 1 /, 000 sq Jf o/ u/j-Cl., 

q« D.,.. nmmurifh cairir "There IS 


Mm 




fjj. 


This 250,000 sq ft develop- developed by European Fei 
ment, which was completed in and W. A. Bla c kburn, 
the middle of last year, has now Coventry company- 
been fully let (including a large Mr John Shuttleworth 
unit of Littlewoods) and has Peter Bromwich said: "Thej 
created a new dimension in a fairly steady demand 
Rugby’s central area. The con- offices in "the area, and 
tract value of the project was Clarendon Square tomldin, 
£ 5 . 5 m. attracting a lot of interest. 

Another major development tenants have already moved 
for the county is the construe- Leamington has also seen 


ior xue euuuur ujs — -- — — 

tion of a £9m office block on the siderable development of retail 
outskirts of Stratford upon premises in the past few yeara, 
Avon by the National Farmers’ notably by a local company, City 


Mr John Shuttleworth of cinrenrio»z Sotwre iron an orcliitcctural airard. Jt provides I/.000 SQ jf f 

Peter Bromwich said: "There is 4 

offices^m ttie* 7 itm. and the and Continental Properties. This the Parade, while sewn shops Uriii had 

Qarendon Square buiWingjs has been ^ response to the gl^t sjrcet h^’e Sl been^L lome develop* 
attracting a lot of interest. Two popularity of the town ~ Alliance has completed the view that mo! 

tenants have abready moved m. ^ ^ s^sSops in wSnJfck SEScS* development in U 

Leamington has also seen con- MMWirp and Dixons ft.rthpr two. each of 2.000 sq come in the form 


siaeraoie development ui .cum . 

premises in the past few years, have all taken newly developed 
notably by a local company, City property m Warwick Street ana 


has been in response to the Street have aH been lot. Some developers now Mbe 

growing popularity of the town s un .Alliance has completed the view that most futu.e oO-ii 

a s a shopping centre. six shops in Warwick Street and development iho 

Boots, Mothercare and Dixons a further two. each of 2.000 sq come * n U t SS J ui"r 

have aU taken newly developed ft. will be available by the end * 

property- in Warwick Street and cf the year. Rental values of am-prabte 

prime shopp.n; spjix- have now Sir J S by «.» . 



prime shopping space nave now 

h“h n s%r“™“?Va™i’t S S hire. “ ^nL^nlcularb; ftosi s!n- 
Another recent office lclUns l^pn,. 




Leamington — aimiana xsanx anu ,, nvor .h,. n>t 

Warwick District Council. Ren- completions wjr , 

tal values Tor properly of this five years in warji i 
kind is now between £3 and 


^However, the retail market is were through private devetep- 
now awaiting the impact of a ra ^K rir , ffie five ycars up tu 


large retail shop project pro- "r.—fggf- iussl " ovcr a.WM . 
posed for the town centre by the April i»si. 1 ^ cfJ - n , hc 

council, which could reduce or houses w r - ..... __. lrtv 




values. 

According to Mr Stephen 


2,000 were for the counci, 
reflecting the greater emphasis 


According to Mr Stephen „r c JT, 'pA Vm of 

Evans, senior partner at agents “ , J“ in I “ d " s S, in d „ u. c needs 


Staites of Leamington, there 
was now strong demand in Ihe 
town for freehold office property 


the county on meeting the needs 
of the growing work force. 
However, slower industrial 


town for freenoia omce property . ----- 

for professional groups such as growththanpr^ictcdhas ledt 
accountants and architects, but a considerable shortfall : in hous- 
planning restraints meant that .ing requirements in some are-*-- 






very little property of this kind 
was available. 

He said that the development 


The situation in Warwick is 
somewhat different, with around 
two-thirds of housing develop- 


Warwick’s older buildings , such as the famous Lord Leicester Hospital, add to 
development problems because of the difficulty of blending in designs for 

s hops 


tie 2>aiu Ultfl Uic inu-uii.v- 

of shops in the town had been ment over the past tivo > ears 
allowed where design was having been undertaken by the 


duuwtu nuwfc — -D— o 

acceptable or Regency frontages private sector. 


had been duplicated, but in 
Warwick, where buildings were 


Lome Barling 









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Sports and other connected physical disciplines 
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However, in Europe our climate is not always as 
we desire. Additionally, modern man and woman 
is eventually subject to the constraints of time, and 
is not always able to indulge in sport when the 
weather is ideal for such a purpose. The Sports 
Hall exists to provide a solution, widening still 
further the total leisure spectrum. 

With the DURR Sports Hall you can be "on the ball" 
or "In the swim" all the year round. Year-round 
utilisation is the name of the game for both operator 
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DURR are all-rounders and can handle your project 
from planning' to hand-over for immediate occu- 
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WARWICKSHIRE IV 



Warwick University’s plan to set up a neighbouring science park has attracted widespread industrial interest. Lome Barling repor^ « 

Important focus for infusion of high technology 


THE UNIVERSITY of War- 
wick's plan to set up a £3m 
science park alongside its 450- 
acre campus, which attracted 
wide interest at its recent 
launch in London by the 
Education Secretary. Sir Keith 
Joseph, is regarded as an 
important initiative for long, 
term industrial growth in the 
county. 

The basic concept or the 
science park is to encourage 
the development of new pro- 
ducts by allowing small com- 
panies to work alongside the 
university and take advantage 
of its expertise, particularly in 
biotechnology and bio-engineer- 
ing. computer science, micro- 
electronics. robotics and high 
technology manufacturing. 

The West Midlands Cminly 
Council has made an initial 
investment of £545,000 in the 
science park, mainly to provide 
infrastructure on the first 10 
acres of the site next lo the 
university. The Warwickshire 
County Council is expected to 
make an investment of £S0,000 
in the project, while Barclays 
Bank is to invest up to -Elm. 

Mr Michael Shattocfc. aca- 
demic registrar at the univer- 
sity. said that a number of large 
companies had also approached 
the university with offers oE 
funds for various projects. It 

! ••'SB 


, 


was now a mailer of ma idling 
those offers viih the right 

people to do the work. 

He said that considerable 
interest had been shown _ by 
American companies in the field 
of biotechnology, while the park 
would also welcome research 
and development units set up 
by large British companies. The 
first buildings on the site are 
expected to be completed by 
the middle of next year. 

The response of financial 
institutions has so far been 
encouraging, since it is clear 
that some small companies will 
need medium-term finance at 
minimal interest rates if ibeir 
projects are to come to fruition. 

Companies resident on the 
science park will be encouraged 
to csl/blish close Jinks with the 
universily and will be offered 
access to all its resources, 
whether scientific, academic, 
cultural or social. 

Terms of occupancy will vary 
according to the requirements 
of companies, but flexibility is 
a major objective. In some 
cases, grants may he available 
from county councils, and low 
rental charges will be offered 
for companies wishing to take 
space in the “ incubator " build- 
ins which will be funded by 
Barclays Bank. 




'' 






£ J :p 
t: • 








Technician in the Biological Sciences rlcinrtinent 
loading a rotor into an ulira-ccntnfugc 


Mr Anthony Budge, chairman 
of Barclays Birmingham Board, 
said at the recent launch: “We 
are supporting this development 
because we feel industry must 
take advantage of high techno- 
logy changes if it is to compete 
effectively. 

"The West Midlands must. I 
believe, change its basic indus- 
tries rrnm essentially metal- 
based to higher technology. I 
am encouraged by the number 
of companies which are inter- 
ested jn research and develop- 
ment for biotechnology, 
robotics, high technology elec- 
tronics and scientific measur- 
ing.” 

It is envisaged that the 
incubator building, totalling 
25,000 sq ft in size, will he built 
and owned by Barclays, which 
will lease the building to the 
science park management com- 
pany. which in turn will let 
small sections of it to suitable 
tenants. 

The land on which the park 
will be developed is owned 
partly by the university, and 
partly by Coventry City Coun- 
cil. and there is room for expan- 
sion beyond the first 24 acres. 

It is intended that -some 
incoming companies will build 
their own premises of varying 
size, but to a high standard of 
finish and of low density, in 
keeping with the university 
campus .and the surrounding 
landscape. 

Alternatively, the science park 
management will construct pre- 
mises to a company's require- 
ments. dealing with the neces- 
sary* financial, design and con- 
struction details. The company 
would then pay an annual rental 
for use of the promises. 

Mr John Butterworth. Vice- 
Chancellor of the university, 
said at the launch of the project 
that it would not he just another 
glorified property development, 
since the aim was a transfer of 
technology from the campus to 
the new site. This would be 
achieved in a number of ways, 
including consultancy, partner- 
ships and informal contact. 

He said Warwick's particular 
strength was the vigour of its 
science faculty. Moreover, the 
“excellence of the staff" had 
led to the university being able 
to aitraet research grants of at 
least £3m in every year since it 
was founded in 1964. 

“We all have an interest in 
widening the economic base of 
Coventry and -the surrounding 
area of Warwickshire in which 
there is a population of around 


GASH 


Warwickshire the Heart of England 

Warwickshire offers an excellent living and working environment 
convenient to the industrial heart of England but possessing the 
traditional virtues of the Midland Shires with lively, thriving market 
towns and pleasant uncrowded countryside. Wrapped around 
Coventry and Birmingham, it can take advantage of the services and 
markets offered by the nearby cities. 

This is an area with potential for new development through its natural 
advantages and its plans for the future. 

Closer to the capital 

Inter-City Rail links the county to the capital with a half-hourly service 
from Rugby (57 minutes) and Coventry (64 minutes). Ml gives 
excellent road access to London and the North and soon the extended 
M40 will give an alternative, even better new road to London. 

M6 crosses the county and opens up the North-west to traffic from 
Warwickshire. 

If it's flying you want, two commercial airports in the county and 
Birmingham international only three kilometres over the county 
boundary offer facilities for scheduled, commercial and private flying. 

Sites for new industries 

\ ) A wide range of premises and freehold sites is 

J \ available immediately in the main towns and 

fltorth the Universily of Warwick has just an- 

\ wanwetahney^^. nounced its new science park to serve 
\ \ ■ / the county's new industries. 


lm people," he said. He also 
welcomed the participation of 
Lanchester Polytechnic in. 
Coventry in the project, since 
it had strong links with 
industry. 

One of the fields which has 
attracted most interest from 
industry >is biotechnology, since 
the lead times involved in 
developing new products is long, 
often seven to 10 years, and 
Warwick has already co- 
operated with ■Wellcome, the 
drugs company, on new methods 
of manufacturing interferon. 
The production of vaccines 
through cloning is also being 
researched at the university. 

The recent establishment of 
the Institute of Biotechnology 
at the university is expected to 
be an added attraction for 
companies working in this field. 

Recent advances in minia- 
turised electronics have also 
stimulated research into micro- 
engineering at Warwick, in 
conjunction with work on 
optics, which will soon have 
important applications in 
industry. university staff 
believe. For example, this 
would allow the development 
of smaller sensors which in 
turn will improve control 
systems for a number of uses, 
such as in engines. 

Although discussions are now 
taking place with about 12 com- 
panies which have shown 
interest in moving onto the 
site, it is stressed that the pro- 
ject will not create large 
numbers nf jobs itself. Jab 
creation would come indirectly 
as successful products were put 
into production, perhaps else- 
where, as a result of collabora- 
tion. 

While the response of banks 
and other financial institutions 
has been Important in getting 
the project off the ground, the 
willingness of county councils 
and Coventry City Council to 
become involved has been vital. 

Councillor Geoff Edge, chair- 
man of the West Midlands £ 
County Council's economic 
development committee, said: 

“ At a time of increasing 
economic difficulties, it is 
important that universities do 
not remain ivory towers, 
separate from the industry and 
community in which they, are 
situated. 

'* It is important that the new 
ideas they produce are carried 
over into developing a whole 
range of new industries and 
technologies which Britain has 
been missing for some time." 


ssrnm. 



it- 'Ctvuw r<irk 

;''StY>9t*xi Ceotfc . 

P s, . . ;• • v : 

f •. <. v V-'.v 

J>y. •//-■*• 






Above: Location of the science park in relation to the main university buildings. Below: The university 

Arts Centre on the central campus 



rsi:*' 






Nuneaton and Bedworth 

The main growth area in Warwickshire offers 

plus Inter-City Rail access (London 75 minute^?^;,^^ k ^1m^gg^ 
Strong in manufacturing, white collar and 

a workforce to a diversity of companies in engin^ei^i^pi|ip^§^^^ 
clothing, box and metal founding industrle^-TR^; ; '^j»(!^6|^M^i 
estates are well situated to take advantage of 

roads which have led to the borough’s ^ 

districts in the country for growth of warehou^tg^y^^4 ' J 
the last ten years..'':';?. . r . • . t-W.*:..* ,V->; 1 V ^ - 

Ru9by " 

Home of GEC, Rugby f0rflai^Oefiie!T&;^ 
other “blue chip” 
kilometres from . r 


Attractive towns, tourist attrtibtieniSi^s^ 
live and work in. The 
industries with firms suchis^^/F^re^ 
New industries are to be 
fine new estate less 




Nuneaton 


Warwick 

t 

Leamington 


Stratford- on -Awn 


Internationally known 
[ for: 

Stratford-upon-Avon, the 
Royal Show at the National 
Agricultural Centre, the 
home of GEC., AP, Warwick 
Castle; and the skill of its 
workers in industry. 


is 




on-Avbn, Bishops 

Wellesboume, all have small 

development by smaJIerenterprises^'ir%|X ; _ 

North Warwickshire 


North Warwickshire 

Borders Birmingham and . Cove ntry r The M 


trunk road. ExtensionS'fc; > tWJ^Wf®a^ s tkB^^^^fe|p^ 
Coleshill. 

Coieshill are 
available. The 
warehousing 
purpose by 




Mi 

»*>»• 





sfSrSxi&ZSSB! 








I0$2 \ 



■>' Elnancial Times Monday March. 8 1982* 1 " 

Companies and markets 


23 


WORLD STOCK MARKETS 


NEW YORK 


1981.2 


High 


BIS* 

283® 

1*98 

371* 

661® 

3668 

*1% 

SDH 

441a 

Sfri* 

471s 

209* 

481® 

H* 

S& 

80ia 

2114 

38 

649* 

59% 

307® 

3618 

161* 


Low 


stock 


Mar. 

6 


34S* 

17B® 

1% 

24 

293® 

1618 

28% 

221a 


AWCOotp , 

Abbot 1 nK> M 

Acme W*vo i 

Adobe Oil ft Gas.| 17 
Advanced Micro. 
30% Aetna Ufa A Gas 
9s® Ahmaraon IH.F.) 

AJr Prod ft Cham 

Akzona 

Albany lnL.„^ 
Alborto-Culv— 

. Albertson**.,, 


31 l a 
91 a 
23 
101® 
20 


18Tb UUcajiAiumlMuin 


1*5* 

24 

26 

ST 

■a 


AJco Standard.. 
Alexander ftAl- 

Alegheny Inti 

Allied Corp | 

Allied Stores... 
AMs-Chalmer* _| 
Alpha Porta | 


19Ea 
46 If 
101® 
38 
10 
249* 
13ie 

976. 

191* 

19 

29 

28 . 
343e 
29 
123* 
1018 







in* 

61% 

67 

46 

455* 
81 - 
46 
37 
Ws 
361* 
177 B 
64 
4668 
*»% 
57 
5DT* 
4B1 b 
4Tj 
441* 
717. 
3168 


M" lAlora. ... i 

34 lAmal. Sugar—, 

2S 3 * Anuuc 


23 Amdahl Corp 


16«4 jAmorada Hi 

B7b 'Am. Airlines— 
34%. (Am. Brand 

Am. broadcast’s 

Am. 'Can 

Am. Cyan am id... 
Am. Elect. Powr.l 


265a 

257 B 

25 

16 


567b 


395b JAm. Expro**. 


_ lAm. Can. lnsnceJ 
1418 JAm. Hotct ft Dk... 

28^8 'Am. Home Prod J 


517® 

21% 

236 

301* 

455. 

838 


Am. Hosp. Suppy 
Am. Medical Inti 
Am. Motors 


lAm-Nat, Rescosj 341 b 


A m.Petflna— 
[Am .Quasar Pet- 


24 

433e 

2S9* 

23 

161* 

13N 

40ia 

279s 

267g- 

257 a 

171* 

455* 

41Bfl 

146« 

541* 

3938 

21% 

298 


435. 
. 86e 


efL -« 



43 

32 

617* 

353b 

285* 

oat, 

985* 

48 . 

ZD 

463a- 

24*b 

4188 


24Sh [Am. Standard.—! 25% 
211* {Am. StorB#...._..J 3Hi 
483* [Am. Tel. ftTeU.] 66 1* 

25 Kmetak Inc. , 273* 

SOU (Amfac ; .22U 

44i s AMP :..l 401* 

Arnstar. ( aai* ■ 

Amvtead Inds 86% " 

Anchor Hockg... 
Anhouaer-Huacli 
A/oherrnanfo/s— 
ArmoD.^. ; 


1S7b 

.26 

i'15% 

281| 

14ia 

2lia 


15ia 

45U 

22J*- 


■ , t 


185a 

175* 

481* 

407 B 

51 

657b 

SIS* 

337, 

271* 


13>b lArniBtronaCK— 

8% lAsamera OLi 

18ia 

£3 (Ashland Oil 

237b- And 0 Goods ... 

5S8» Atlantis Rich 

25ia Auto-Data Pro.... 

221, Avco 


20is [Avery Inti 


14.U 

838 

Z8J S 
23% 
30 ■: 
337j 
848* 

15 

215* 


601* 
413, 
49 
If A, 
32 
28% 
.3038 
461* 
37 
23 
5918 
36 
231* 
40U 
24ie 

293* 
18U 
671, 
25 U 


411* 

24u 

26 

20 

24 

17 

175a 

33 

28 

145b 

43 

223* 

17 

241, 

5la 

17 

11>8 

61 

147a 


Avnet._ 

Avon Prod 

Baker Inti. J 


Salt. Gas A Ej — 25 


Ban Cal | 

Bangor Punta — 
Bank America.-. 
Bank of N.Y~ I 


Bankers TkLN.Yi 34l a 4 


Barry Wright [ 

Bauech & Lomb.J 
Baxt Trav Lab.-. 
Beatrice Foods... 
Beckman Instr... 

Beker Indt 

Bell & Howell 

Bell Industries... 

(Bend lx, 

Beneficial 


421* 

247g 

26 


267 B 

17 

196b 

4358 


164 
44 
33 lg 
183, 
484 


197b 

154 

521e 

I47 fi 


32 

375s 

213, 

384 

33Sb 

43S* 

471* 

31S* 

BBS, 

54 

264 

584 

394 

174 

364 

•31 

31 

37- 

274 


197b 

20 

154 

294 

204 

184 

264 

254 

185* 

■ 13b 
22 
464 

187, 

107 B - 

264 

20 

.154 

234 

134 


Beth Steel. 

Big Thee Inds—.. 
Black ft Decker . 

Block HR— 

Blue Boll— 

Boeing—.— — ] 
Boise Cascade— 

Borden J 

Borg Warner—— 

Braniff Inti .1 

Brtgge Strata- 
.Bristol-Myers - 

|BP 

Brockway Glass. 


Brawn Forman b] 30- 


Brown'Gvp-.— 


Brown ft-Sharp-J 154 


Browng Ferris-. J 
Brunswick Vi- 


20 

20 

134 

34 

214 

184 

274 

314 

24 

14 

24 

54 

204 

14 


-264 


286a 
19 •„ 


254 

: *7S* 

72 

B2Tg 

554 

634 

604 

38 

697b 

214 

354 

344 

454 

44 

If* 

514 


14% [Bucynu-Errs : 

18«r MBnTttngt6n‘ imr r; 
384 'Burlington Nrtftn 
Burndy 1 
Burroughs ] 

CM Inds. — 

CBS-—-.. 

CPC Inti. 

CSX- 

Campbell Red L. 
campbell Soup- 
Cam pbellTagg... 
Canal Randolphs] 
Can. Paolflc— . 
Carlisle Corp — 

Carnation i 

Carp Tech. -... — , 


167b 

274 

34 

394 

384 

43 

104 

264 

197b 

26 

254 

244 

264 

334 


474. 

!««*-' 

435* 

174 

337 B 

341b 

394 

374 

435* 

104 

334 

BD7* 

2078 

27 

244 

295, 

344 



204 

725* 

687, 

424 

164 

17. 

354 

17 

354 

54 

294 

114 

20 

595* 

614 

394 

264 

9 s * 

524 


134 


214 

124 

10 

234 

104 


_ Carter Hawley-. 
464 {Caterpillar— — 
514 ICelanesa Corp — 
Centex 1— - 
Central A Sw— 

Central Soya 

Central Tel Util... 

Certaln-tood 

164 (Cessna Aircraft- 
14 Champ Home Bid 

■154 Champ Int— 

“ Champ Sp Plug.. 
Charter Co — ... 
IchaaoManhatt'n 
Chemical NY — 
Cheese Pond. 
Chicago Pnaum-; 

Chrysler 

‘Chubb— — 


7 

64 

434 

427 b 

284 

144 

34 

374 


15 

464 

624 

22 

154 

104 

294 

10Tb 

164 

14 

164 

7 

7 

574 
547 b 
324 
144 
’ 44 
474 


457. 

295* 

674 

304 

584 

454 

1ST* 

157 fl 

394 

181* 

154 

437 d 


214 
214 
254 
21 
234 
284 
97s 
94 
SOU 
14 
B4 
22 , 


Cincinnati Mil..- 

Citicorp.... ... 

Cities Service. 
City Invest J 

Clark Equipment 

Clove Cfiffs Iron, 

Coro x 

Cluett Peaby..— 

Coca Cola 

Colgate Palm— 
Collins Alkman- 
Coit Inds— — 


224 

27U 

26 

224 

26 

274 

125* 

147a 

314 

18U 

114 

224 


1681-2 


High 


414 

834 

*4 

494 

224 

674 


Low 


Stock 


284 
324 

If 

26 icombustn. EngJ 26 
177, jCmwlth. Edtsoru. 214 
42 [Comm. SatelrteJ 643* 


Columbia Ca* 
Columbia Piet— 
Ccmbfited int—., 


Mar. 

5 


304 

634 

SOI, 


241* 

367, 

564 


35l, 

344 

444 

564 

194 

184 

303* 

401, 

.424 

19 

424 


114 

284 

41fa 

174 

225, 

24 

244 

404 

16 

3 

254 

27 

28 
15 
293* 


Comp. Science— 
Cone Mills, 


Conn' Gen. Inn.— 

Conrac — ! 

Con*. Edison.- 

Cons. Foods 1 

Cons. Freight— 

Con. Nat. Gas I 

Conumcr Power) 177, 
teonL Air Unes.-I 
Conti. Corp-— 

Conti. Group--., 

iCont, Wkmla 

Conti. Telep.— J 
Control Data—...! 


134 

287* 

50 

2278 

55 

324 

33 

404 


4 

254 

284 

284 

154 

324 


555a 

164 

474 

744 

as 

sal, 

463* 

42 

S5 58 

C24 

574 

60% 


U4 

35% 

544 

684 

32l| 

47 

414 

S2 it 


39 

9T B 

23J 4 

41% 

17% 

24 
261* 
27 

25 

24 

Cooper IndSh..-. 

Coots Adolph 

Copperwsid. 

Coming Gian—. 
CotTOOn Black-. 
Cox broadcast'll. 
Cratne.——.— 
□rocker Nat— i— 
Crown Cork—— 

30% 

33% 

5% 

Cummins Eng— 
Curtias-Wrlght ._ 

®1% 

43 

28% 

.20 

31Sfl 

Dana 

Dart ft Kraft 

Dayton-Hudson - 


19 

Denny's.— 


38 
10is 
304 
424 
SOU 
524 
264 
894 
264 
24i a 
323* 
3B4 
7 J* 
*64 
497a 
284 

324 

313* 

304 

3D4 


IB 

123* 

41 

tr- 

uss* 

137 b 

253* 

664 

S3 

SB4 

633* 

53S* 

15 

23 

TO 

asu 

£is* 


115* 

11 

263* 

777* 

97 B 

IS 

45 

214 

S1U 

244 

204 

304 

227 8 

1U« 

164 

643, 

524 

141, 


IDentsply Inti J 154 

[Detroit Edlsott— .j 124' 
I Diamond Inti J 

Diamond Shank-1 

DiOioraiO-... — — 1 

lOigtteu Equip— I 

jDlllingham ; 

iDmon— | 

] Disney (Walt}-. 

> Mines— . 

Ipoimeily (RR) ] 

[Dover Corp— — 

Dow Chemical ! 

Dow Jones— 

Dresser 

Dr. Pepper. I 

I Duke Power— I 

Dun ft Brad 

DuPont— - 

EQ ft c 


40 
193* 
8U 
77 Tg 

114 

194 

514 

i¥* 
22 >* 
204 
469* 
227 t 

114 

23 

634 

325* 

144 


277, 

124 

293* 

847b 

414 

147b 

314 

294 

8 

28 

494 

194 

384 

303* 


is 

Easco„ — I 

6 


28% 


61% 


26% 


20 

EchEn Mfg 

18% . 


17 

1 ^ ' Ii 1 J • 1 1 if •*! i ; ^ 

2% 

Elect. Memories 

20 

El Paso _ 

36% 


10% 


96% 

Emhart 

17% 

lEngelhard Corp. 


184 

6 

19 

69 

284 

124 

184 

293, 

34 

217, 

434 

107* 

317 8 

204 


344 
191, 
574 
344 
264 
604 
407s 
354 
28 
91, 
264 
264 
12 . 
391* 
«4 
1434- 
354 
134 
.464 
19 


19% 

Enserch 

8 

Envlrotech— 

38% 

Esmark- 

18% 

Ethyl- 

13% 

Evans Prods...— 

18% 

Ex Cell 0— 

27% 

Exxon— 

20 

FMC. 

12% 

Faberge. 

3% 

Fodders — — 

17% 

Federal Co 

18% 

Federal-Mogul— 

.6% 

Fed. Mat. Mott.— 

24% 

Fed. Paper Bid— 

% 

Fed. Resources- 

29 

Fed. Dep. Stores 

19% 

Flelderest Ml 

9% 

Rrestone — 

31% 

1st Bank System 

7 

1st Charter Fln-1 


194 

144 

.487, 

184 

134 

1B»* 

277, 

25 

164 

8*9. 

204 

203* 

84 

254 

1 


21 

104 

324 

7 


1981-2 
High I LcW 


stock 


if* 

47 

IS 

204 

364 

214 


34 JGL AtL Pac-Tea. 
3 ;Gt. Basins rat — 


Mar. 

5 


327, iGENtftlT. Nekoosaj S4 


97, 

14 

221, 

143* 


Gt. West FI nan cl J 104 


Greyhound. 
Grumman—— 

Gulf ft western-: 


147, 

2S>, 

154 


464 

554 

844 

354 

191, 

377, 

207, 

314 

694 

214 

25 

535* 

874 

261, 

403* 

39 

634 

514 

394 


281* IGulfOil. 


224 


Hah (FBI- 


54 4 MMEfburtMi— 


247, 

114 

28 

134 

24 
28 
164 

a 

25 
164 
1BT, 
234 
267, 
384 

334 
16 < 


HammermiU Ppr] 

Handleman ._ 
Hanna Mining...: 

Harcourt Brace- 

Harris Bancp, 

Karri* Corp — — 

Hanoo — — 
iHeda Mining — ! 

Heinzflif) — 

Keller Inti— — 
Hercules ™, — ■* 
Henhey— — 

Houbloirl — 

Hewlett Pkd 

Hilton Hotels—.! 


28>* 

264 

544 

254 

114 

284 

134 

S*' 

V 

294 

164 

194 

344 

354 

38% 

36% 

254 


331, 

09% 

7fl7a 

1144 

154 

244 

194 

504 

194 

at u 

» 

314 

444 

304 


214 

29 

204 

687b 

8 t B 

154 

144 

284 

144 

26% 

3*7, 

144 

254 

20 


HoHday inns_._ 

Hotly Sugar 
.Homestakf- . 

Honeywell 

Hoover 

Hoover Uni 

Hormel Geo.v..- 
Hosptol Corp.- 
Rousahold inti-, 


Houston Inds. — J 1ST, 


Houston Nt . 
Hudson Bay Meg 
Hughe* Tool — 
Huinn^a* — . 


284 

697* 

201* 

754 

87* 

164 

18% 

284- 

164 


36% 

16% 

254 

234 


18% ( 47, 

46% 20 

404 I *9 
60% I 364 
204 I 12 
34% 167b 

84 3% 

.a 


28% 
797b 
35 
411* 
31 7b 


45% 

71% 


4% 

67* 

12% 

48 

204 

204 

25 

27% 

24*, 

49 


Husky Oin 

Hutton IEF1 

ICInde. 

I HA Corp 

JO lot- — 

Ideal Basic lnd_. 

Ideal Toy — 

Id ADR— 

Imp Corp Amer-. 

INCO 

ingersol Rand— 
Inland Steel — 

Intel 

Inter First Corp, 

Interlake-— 
inter North-...— 


47, 

26% 

32% 

45% 

124 

167, 

84 

15 

48 

21 

24% 

25 

50%. 

-2B 


[IBM I 58% 


23 
267, 
10% , 
Bl% 
19S* 

374 

57T, 

27% 

29% 

454 

517a 

34 

38% 

127b 

424 

23% 

867, 

494 


17% 

47, 

7 

33% 

9% 

254 

427, 

20% 

221, 

29 

164 

22% 

28% 

7% 

29 

15% 

14% 

364 


Inti. Flavours-.... 
Jlntl. Harvester-.. 
[tnUncome PropJ 

'int^Paper 

In t. Rectifier. 

IntTolftTel 

Irving Bank. 

James (FS). 

Uefio-Ptiet— 

[Jewel Cos— 

Jim Walter— 

Johnson Contr— 
Johnson ft Jns— 
Johnthan Logan 

woyMnf. - 

K. Mart 

Kaiser Alum- 

Kaiser Steel 


10 % 
54 
81* 
347, 

114 

26% 

44% 

207, 

26% 

304 

177, 

227* 

337* 

12!« 

294 

18% 

141, 

437, 


344 

153* 

2?4 

244 

42 

431* 

26* 

724 

9% 

41 

27 

10% 

.28 

267, 

23 

424 

377, 


145j 

8^4 

Kaneb Services.. 
Kaufman Brd— .. 

175* 

26% 

29% 

18% 

53% 

8% 

27 

14% 

Kellogg — 

KermametaJ 

Kerr -McGee 

Kidde 

Klmberley-CJark. 
King's Dept St— 
Knight Rdr. Nws 

4% 

19 



13*4 

1334 

233* 

24% 

LTV_ 

Lanier Bus. Prod 

Lear-Siegler 

Leaseway Trans. 


14% 

8% 

10% 

22% 

302* 

B94 

20 

6 O 4 

84 

28% 

147, 

8 

28 

137, 

18% 

235* 

26 


804 J 
:4Q4j 

25% 

V 

5 

14% 

31% 

31% 

25% 

40 
25% 
40% 
33 
16% 

41 


15% 

1st Chicago— — 

24% 

let City -BankTex 

391* 

1st Interstate— 

10 

1 st Mississippi-.- 

54% 

1st Nat Boston- 

2 % 

1st Penn, ..... 

2 


3% 

Fleetwood Ent— 

14% 

Read-van.——— 

94% 

Florida Pwr ft l— 

157* 

Ford Motor— 

SIT* 

Foremost Mck.._ 

12 

Foster Wheeler. 

16% 

Freeport McM— . 
Fruehauf 

16% 

8 S 4 

28 

GAF 

GA7X 


19% 

28% 

31 

10% 

414 

r 

S2 

30% 

20% 

334 

12 

164 

17% 

9% 

28 


45% 

32 

23% 

40 

42 

68% 

34% 

454 

39% 

574 

7% 

51 

34 

29% 

107, 


32% 

Gannet — — 

16% 

Seleo 

14% 

Ben Am Invest ... 

26% 

Ben Cinema — — 

21% 

Gen Dynamics— 

52 

Ben Electric 

28- 

Gen Foods - 

25 . 

Gen Instrument. 

27 

Ben Mills. - 

34% 

Ben Motors ...... 

4 

Gen Pub Utilities 

32% 

Gen Signal 

24% 

Gen Telep Elec... 

IBS* 

4% 

Geo Tire. 

.enesco 


32% 

18 

147, 

374 

21% 

60% 

324 

327, 

364 

T 

35% 

29% 

19% 

4% 


36 

31% 

62% 

33 

92% 

28 

36% 

35% 

274 

21% 

30% 

59% 


264 

164 

29% 

244 

427a 

164 

27% 

U% 

18% 

16 

20% 

354 


.444 J 337, 


Genuine Parts. 
Georgia Pac— . 

Geosouroe 1 

Garbos Prod — 

Getty Oil-. | 

Olddins Lewis—. 1 

Gillette 

Global Marine..... 
Goodrich (BF}. 

Goodyear Tire.. 

Gouw 

Grace 


[Grainger (WW). 


534 

164 

29% 

26% 

421, 

171, 

34 

124 

194 

21% 

204 

36% 

57% 


431, 

50 

41 

29% 

08% 

46 

814 

534 

108% 

37 

567, 

60#* 

30% 

397, 

36 

167, 

35% 

57 

17% 


30% 

'224 

2BT, 

21% 

47% 

35% 

48% 

264 

73% 

224 

25% 

21 

16% 

13% 

37% 

12% 

174 

38% 

12 


Lenox 

Levi Strauss ., 

(Lsvttx Fumtr 

Ubby Owens Fd. 

Lilly (EW— 

Lincoln Net 1 

Litton Inds. 

Lockheed- — 
Loews i... 
Lone Star Inds ... 
(Longs Drug Sirs.! 
Louisiana Land 
Louisiana Pac. 

Lowenttein - J 

Lubrlzol 

Lucky Strs. — -I 
(mia Com. inc— . 

MCA 

MacMillan 


364* 

£2% 

25% 

21% 

63% 

42% 

48% 

43T* 

86% 

23% 

26% 

24% 

18% 

267* 

17% 

134 

18% 

454 

164 


66 

397* 

267* 

3% 

254 

464 

41% 

21T* 

764 

43% 

42S, 

47, 

187* 

161* 

314 


41% 

30% 

134 

28% 

45% 

16 

297, 

29% 

15% 

284 

28% 

28% 

14 

134 

64 

234 


[Mac 

MfcrsyHanover— | 

(Manville Corp— 

Mapco — 

Marathon Oil — 
Marine Mid-.. 
Marriott.... J 

.Marsh McLenn_. 

Marshall Field - 
Martin Mtta-'.- 
Maryland Cup.... 

Masco — — 

Massey-Foign. 
.Mass Multi.CorpI 

Mattel 

[May Dept. Strs... 


597* 

324 

134 

284 

75 

847, 

37% 

31% 

81 

284 

32% 

29% 

2% 

17% 

16 

263* 


29% 

17% 

407* 

■72% 

487* 

60% 

66 

14% 

324 

394 

43. 

39% 

47% 

67 

1024 

66% 

437, 


22% 

12 

23% 

49% 

24 

274 

394 

64 

20% 

894 

30% 

307, 

361* 

34 

71% 

477, 

26% 


Maytag..— — 
McCulloch L 

McDermott (JR) J 

McDonald* 

'McDonnell Dougi 

McGraw Edison J 

(McGraw-Hill | 

McLean Trukg -. 

Mead 

Madia Genl+ ...... 

(Medtronic 

Mellon Nati | 

Mel villa 

Mercantile Sts -. 
(Merck 

Meredith 

Merrill Lynch. 


34% 
12% 
23% 
82% 
31 
274 
474 
13% 
20% 
37% 
37 . 
35% 
43 
56 
'72 
694 
29% 


isai-B 


High 


12% 

177% 

33% 

644 

102 

407, 

134 

144 

28% 

as 

397* 

63% 

88% 

22 

49% 

34% 

574 


LOW 


54 

90% 

16 

484 

944 

21P 


MGM 

Metromedia 
Mitton Bradley...} 
Minnesota MM.... I 

Missouri Pac 1 

Mobil 


74 (Modem Merchg. 


10 

16% 

60% 

217, 

46% 

52 

14 

12% 

18 

25% 

41% 


Stock 


1981-2 


High j Low 


Mohasco . — 
Monarch M/T — 

Monsanto — 

Moore MoCmrk- 

Morgan MP3 

Motorola — j 

Mutism swear, 
Murphy (GO . — I 
Murphy OIL 
Nabisco Brands.) 
iNaieo Cham. 


Block 


Mar. 

5 


CANADA 


HOLLAND 


HONG KONG 


7;* sohlitz Brew — ,j 12% 


lumbeger 

ISCM — 

Soctt Paper- 
Scudder Duo V J 
Beacon r 


471, Seagram—, 

214 Seafad Power — 
254 Searle(GD) — — 
16 Seam Roebuck,- 
54% Security PkO — . 

23% Sod co 

Shell Oil -! 


23% [Shell Trans- — - 


Sherwin-Wms— J 

Signal — — 

Slgnode — 


43% 

2 H; 

I 64 

11 % 

19% 

51% 

261, 

317b 

18 % 

36% 

27% 

284 

247a 

18% 

21 % 

49 


1981-2 
High ! Low 


Stock 


Mar. 

5 


1981,82 

High Low 


Mar. 5 


: Price 
FI* 


1981.82 


Mar. 5 


High | low 


■ Price 

H.K.S 


27% 

32 

18% 

46% 

48Tb 

a* 

34 

134* 


18% 

19 


AMCAtDtl — 
Abitlbi. 


18% 

20 


54 Agnico Eagle—! 59, 
224 'Alcan Alurrtn — .1 23% 
34% ,'Algoma Steel — ! 34% 
13 [Asbestos—— 13 
21 % 22 
22% Bk. Nova Scotia. 21% 
2.68 ‘Basic Resources, 2.65 


BSJ 
79J- 
29.41 
30B 1 
96J: 
60,i; 
222 
88.71 
62 ; 
41 

163 | 


83.5 acf Holding. 
56 'Alhold —™ , 


15.TAKZO. 


£69 J; ABN. 


i 77.B 

„.t 70.7 

t 28 3 

i 280 


174 

26% 

294 

29h 

31% 

27% 

40% 

28% 

164 

307, 

39% 

18 


114 

1B4 

22 

22% 

18% 

13T, 

13% 

20% 

13% 

20% 

16% 

13% 


Napca Industrie 

Nat. can. — 

Nat. Detroit — 

Nat. Dlst Cftem. 

Nat Gypsum .... 
Nat Medical Ent 

Nat. Semicduetr. 

Nat. Service led. 

Nat. standard — . 

Nat. Steel 

Natnmw— 
NGNB— 


84 [Slmpilcity Patt-. 
114 Singer 

11% Skyline — I 

29% Smith Inti — 
Smith Kline-.—.: 


9% laonesta inti 


8% 

134 

12% 

29% 

654 

9% 


20 

B5% 

58% 

37 

22 . 
83% | 
374 
18 
43 
164 


17 ,Beli Canada [ if 

12% >Bow Valley 12% 

22% 16 P Canada——; 

187, Brascao - : 

6 iBrinso — — — i 
9% ;B.c. Forest— 


24% IClL liw. , I 

[FalnrfeW 


7% ‘CadillacFilrvii . 
13% ICamfloMinee— 
8% ‘Can Cement 1 


27% 

1ST, 

6% 

9% 

25 

94 

13% 

9% 


78.7AMEV ?2 

46 AMRO — 1 

270 iBrederoCert — [194 

68 | Bos Kali* - — -j §7 

34 iBuhrmann-Tot— as 
18.1 Celand Hldgs-™' 333 
98 IBserie f-NDU IW.135J 

148 J; 106.ffEnnla [110-5 

77.0! 64 ,EuroComT>t— I 71 
49.8: Gist. Brocades— I 70 - 5 


74.5' 
60 J: 
20.41 
13.4: 
235, 
142 | 
30.4; 


75 

aee« 

17% 

37% 

78 

134 ! 
42% 
48% 
474 

36 


39 

19 

14 

274 

317 B 

107b 

27% 

534 

234 

21% 


NCR 

New England El- 

NY State E ft G— 

NY Times 

New mont Mining 

Niag. Mohawk-. 

NICORlno. 

Nielsen (AO) A—. 
NL Industries — 
NLT- 


41% 

265, 

16 

341* 

31Ta 

13% 

27% 

4BT, 

234 

22 Tg 


iseny— — 134 

Southeast Bankg: 14% 
(Sth. CaJ. Edison_i 51 
Southern Co.— .J 12% 
[Sthn. Nat. Rbe—.i 
iSthn.N. Eng. TeL 
[Sthn Pacific— 

Sthn. Railway-... 
Southland 

[sw Barcaftares- 

IS perry Corp 
Spring Will* 

Sauare D — : 

Squibb — 


22% 

42% 

52 

84% 

271* 

96% 

28% 

20 

34% 

30% 


42% 

36% 

34 
317 a 
54% 
276, 

35 


90% can N w Lands...’ 90% 

29% 'Can Packers j 60% 

95% Can Trusca > — 

25% Can Imp Bank..-; 26% 
324 Can Pacific—. 324 

16 Can p. Ent > 16% 

28 lean Tire— 1 32 


jstd.Br&ndsPalntj 224 


644 

40 

59% 

27% 

94 

62% 

38% 

331* 

78% 

111, 

29 

614 

217, 

347* 

SOI* 

391, 

35 

13% 

26% 

26% 

.404 


394 

20% 

32% 

20 

31* 

33% 

.994 

91 

36% 

9 

18% 

33% 

144 


Norfolk ft Wertn 
Nth. Am. Coal — 

(Nth. Am.f Philips 

Nthn. State Pwr. 

North gate Exp— 

Northrop — 

NWest Alrlln* . 

NWot Bancorp- 

Nwest Inds- - 

Nwestn Mutual- 

Nwest Steel W... 

Norton 

Norton Simon — 


18 

93% 

25% 

11 

19% 


196, jOooldontol Pet- 


Ocean Drill ExpJ 

Ogdon .1 

Ogllvy ft Mrth. ... 
Ohio Edison — | 
Olln 


144 fOm&rk. 

26% ioneak— — — I 


44% 

207 8 

32% 

27% 

4 1 * 

60% 

94 

18% 

33% 

20% 

194 

IB 4 

241, 

29% 

125g 

191* 

144 

264 


89% 

35% 

314 

15% 

18 

23% 


29% istd OH Cllfornra. 

335* Std Oil Indiana... 

30 Std Oil Ohio 

16% Stanley Wka . — 

18 Stauffer Chem ... 

ZQ Sterling Drug— 

18 4 StavsneUP ). — ..1 13 
SS % [stoke [y Van K— 29% 
17S, Btoragc Tech. ... 86% 

29% Isurr Co 29% 

33% Bundstrand 39% 

23 4 {superior Oil 23% 

144 'Super Val Strs..., 167; 

49 ISyntex- I 65% 

46% TRW : 46% 

26% 1 Taft ; 80 

274 | Tampax— - _i 327, 


30% 

72 

29% 

13 

23% 

14% 

154 

OSH 

30% 


16% {Chieftain ' 16% 

44% IComlnco- { 47% 

14% [Cons Bathrt A. J 15 
6% Cont.Bk. Canada! 7% 
7% Co&eka Resrc'ea i 7% 

7 ;Costaln 1 7 

3.45 ;Daon Deva|- 1 3.45 

94% iDenleon Mines —1 24% 

13% ;Dome Mines. [ 13% 


41^IHelnekan 1 

iS^Hoogcvens — 1 16 

6J Hunter Douglas. 1 T9 

12,6 ;lnt- Muller ; 22.7 

56 KLM - ,IM.8 

l&.l'Naarde n ! 29.S 

126 106.5 NatN«d Cert .—,108.7 
49.8| SZ.SiNed Crcd Bank J 33.1 
112 1 Ned Mid Bank ...!ll&.$ 

92 'Nedlloyd -...H15.4 

60.5'Oco Grinten 93.3 

26.6;Ommoren \Van>.[ 26.6 

35 ! Patch oed 40.B 

15 I Phillip* —1 23.7 

24.5 Rljn ScheidB ) 26 

£07JSRobeco - (211.5 

— 109 J) Rodamco —'121.7 

265J'- 195 [Rollnco 

IV. 2< 117.Z Rorento —...144 J 

iOfc.5 71^!Royal Dutch. ! 76.9 

144 1 71.1,Slavenburg's 1 79 - s 

£60,5! 192 i‘iokyo PacHg.,....l 

160.7! 123.8 Unilever — 1 158.3 

181 : 99 -Viking Roe. 9f 

Bi i ia.i^MF stork — 3a .5 

79.5: 44.5, VNO....- -1 48-S 

79.9 Volkor-Btevln 29.4 

57 ;wa*t Utr Bank.-.! 7B 


38.75, 

5.55 

11.7 
176 I 

8.75 

10,80, 

14.8 
za 1 

31.251 
25.5 
27.70. 
7^0 
7.60 
Z1.60[ 
20.3 | 
B.lOi 

6.0 I 

.5.40, 


lS.liCheung Kong.—- lf-2 
1.75'OoimosPrtp.....-' 

7.90 Crow Harbour....' 10.3 

99.5;Hang Seng Bank. ' 10 
4.H0.HK Electric ........ 

4.25 HK Kowloon Wh. 4.55 


6.86;HK Land ■■! 


12.2 HK Shanghai BK.! 


6.85 

14.1 


IB^B HK Telephone— j 26.8 


13 Hutchison Wpa -1 14,1 

12.3 Jardlrte Math • 1W 

3.75 New World Oev„l 3.80 
4.15(0*0003 Trust Bk~! 4.85 

5.60SKH Praps. ■ 

8.9 Swire Pac A : f.9 

4 .95, Wheel* K Mard A.' 5 J 

4,l0iWhecl‘k Mari t I'e 5 .OS 
2.00 World Int. Hldgs. 2.3? 


JAPAN 


202 
167 : 
128 ; 
36.7, 
49.3' 
24.7 

53.6 
258 ; 
123.8i 


1981. '82 

High I Low 


MOT. b 


Price 

Yen 


33 

£20 


25% 

49% 

24% 

57% 

116 

49 

270 

307, 


9 


9 


12% 1 3.10 
88% j 9% 


Dome Petroleum! 

33% Dom Foundries Aj 34% 

15 Dom Store* : 15% 

19% ;Dem tar : 197, 

60 Falcon N lev »1 ■ 60 

18% iGenstar- - 18% 

195 GL-WestUfe 235 

;Gulf Canada • 11% 

GulfstroamRes—: 3.10 
(Hawk Sid. Can—! 12% 


NORWAY 


746 AJlncmgta 

540!Amada_ 

37B;Asahi Glass .. .. 

430 Bridgostonc 

710Canon„ : 

302Cltiien- 1 

601 Caiei 

399 DKBO 

537 Dm Nippon Ptfl - 

255 Dmwa House 1 

350 Daiwa Seiko. 

365 Ebara 1 

801 Eisai 

398 Fuji Bank 1 

870 Fuji Film '1,230 

BBO Fujisawa -.1,250 

7.3S0, 4,910 Fujitsu Fanuc... ,6.060 

2,940 1,270 Green Cross 1,850 

461 Hasegawa .... .... 572 

537 Heiwa RL East.., 553 


1,0201 

911; 

7131 

G20l 

I,7B0j 

467! 

775 

5001 

B9Q! 

456 

516: 

493! 

1,320 

501: 

2,090' 

1,6001 


848 

620 

570 

413 

798 

29 a 

610 

47s 

640 

38b 

373 

429 

868 

SQ3 


890| 

630[ 


1981. >82 
High | U>w 


Mar. 5 


, price 
Kronor 


11% 


173 

140 : 
151 
84 I 

sio ! 

557.5; 
273 1 


49% 1 25 


ai% 

33% 

30% 

526a 

25H 

67% 

181* 

937, 

29% 

33T| 


19% iOutnoardMarina! 20 


MW iWimaiOTOHn 

13% ,'Overeeas Ship — 


2a % 
29% 
ST* 
46 
36 
26% 
8% 
32% 
36% 
67% 



ens-Cornlng- 

ene-lllinois— 

(PHH Group- 

PPG Inds.- - 

iPab«t Brewing... 

Ga* ft Elect. 
(Pac. Lighting — 
Pac. Lumber— 


[Pac. Tel. ft Tel .... 1 
I Palm 


— - Palm Beach. 

86* Pan. Am. Air. — 
30% Pan. Hand Pipe- 
13 Parker Drilling-. 
17% Parker Harrfn-... 

Sa* Peabody Inti 

21% Penn Central — 

916, Penney CJC) 

35s, Pennzoll— 


119% 

45 

25% 

14% 

29% 

313* 

39% 

837* 

70% 

93% 


Teledyne - 1120% 

Tektronix- — 1 46 

Tenneco — 26 1 * 

Tesora Pet 18% 

Texaco 296* 

Texas Comm. Bk 33% 
Texas Eastern.... 39% 
Texas Gas Tm.. J 837* 
Texas lrrtr‘m'ts-1 BO 
Texas Oil ft Gas- 24 


37 

30% 

51% 

21% 

44 

37% 

8a% 

19 

16% 


175, 

18% 

22 

6 

29% 

21% 

16% 

12 

13 


IHollinger *rgu*J 
! Hudson Bay Mng! 
(Hudson's Bay — 1 
1 do. Oil ft Gas— 

■Husky oil i 

Imaaco ; 41 

imp Oil A : 21 % 

inco-.-—, j 15% 

Indal- 13% 

[Inter. Pipe- I I47g 


25 

20 

20% 

46% 

6 


1 100 iBergens Bank—' 105.5 

77 Borregaard— < 130 

111 Creditbank ! 149 

I C7.5!Elkem ....', ,52 

'• 360 'Kosmos- 365 

307.5'Nor*k Hydro.. 3°2- 5 

135 .Storebrand I 330 


ITALY 


19BK83 I 
High | Low | 


Mar. 5 


Price 

lire 


16% (Texas Utilities — 


21% 

16% 

456* 

25% 

7% 

86% 

40% 


[Textron 

Thermo Electro..; 
Thomas Betts... -[ 

Tidewater 

Tiger Inti | 

Time Inc 

Times Mirror 


207 

21% 

16% 

47% 

23% 

7% 

36% 

43% 


59% 

12 

6.37 

78 

12% 

48 

45 

13 

347, 


£1% ;Mac Blaedel ( 81% 

8 .Marks ft Spencer. 9% 
1.95 >Maasey Ferg —J 
32% McIntyre Mines-! 

5% Mar land Explor- 

18% [Mitel Corp. 1 

35 iMoore Coro 

6 70 (Nat. Sea Prods A 


8.57 
32% 
6% 
267b 
38i a 
7% 


17% iNoranda Mines-': 175* 


62% ITimken ! 


10%] 

39 

36% 

85% 

26% 

58 

48% 

14% 

37 

65% 

686* 

46% 

327* 

36 

38% 

87* 

73% 

33% 

484* 

26% 

86% 


167, 

131* 

407, 

23% 

12 

226* 

42% 

29% 

35% 

18% 

22 

‘P 

S3 

18 

22% 

193« 

65% 


7 . [Peoples Energy 
27% PepsiCo , 

PerWn Elmer — 

Petrie stores 

Petrolane 

Pfizer 

Phelps Dodge — 

Phlla Elect - 

Phibro 

Philip Morris — 
Phillips Pet —| 

Pillsbury 

Pioneer Corp— ... 
Pltney-Bowea _. 

Ptttston - 

Planning Res’ch 

Pleesey — J 

Polaroid — — 

Potlatch — J 

Prentice Hah — , 
Procter Gamble. 


Tipperary.. 

Tonka 

Total Pet 

Trane 

Transeunerica — 

Transway 

Trans World. j 

[Travelers . — 

TricentroJ — 


56 

10% 

84% 

8% 

275* 

207b 

21 

20 

49% 

6% 


09% 

27% 

4.05 

96% 

23 

255. 

84 

7.3 


32% [Nthn. Telecom—! 53% 

7% Oafcwood Pet 7% 

1.40 [Pacific Copper—; 1.59 
62 lPan can petrol... 1 62 

7% IPatino I 22 

114& Placer Dev j 12% 

125r Power Corp ! 126 a 

8.01 [Quebec Strgn— .; 2.01 


173,100.1 D2.200 Asslcur Gen 1M,U50 

37.000 30^00‘8anca Com , le-....37,000 

660! 133|Baitogl Fin.- r 243 

10,640 4,170-CentraIe 5,285 

17,770' 4^70 Credlto Varcslnol 8,440 

2 . 6 IO 1 1,400 Flat- 1.826 

2041 fSFJnskter -I 42 

6,050! 2,640i Invest 3,000 

61.900t2Q.000 Italcemcntl- 137,480 

330, llOiltalsIdor ' 120S 

£88.52 155 Montedison 14D.76 

5,150; 2^70 Olivetti ! £.055 

5,650[ 8,235 Pirelli CO— i 2,735 

2,740 1,160'PlrelU 8pe..... — l.*7S 

1.140 715 Snia Viscosa 762 

39,700lll,lSOfToro Asslc- 117,600 

34,445j 8,160 do. Pref. 


915! 

670! 

1.280! 

1,190; 

1 , 120 ! 

429' 

55b; 

1,380' 

740! 

2,510 

753! 

390 

620l 

9001 
468: 
555 
1,360| 
S4 a 1 
755' 

S!i 

445 


.114,400 . 


AUSTRALIA 


19 B 1/82 


High ] Low 


Mar. 6 


Price 
AuiL I 


24% 

301* 

88% 

31% 

18% 

63% 

62% 

62% 


17% Trl Continental... 
10% Triton Energy.— 

Ill* Tyler I 

15% UAL- 

8% UMG India 

60% Unilever N.V. — 1 

44 Union Camp 

42% Union Carbide— I 


17% 

10% 

183, 

19 

8% 

61% 

46% 

43% 


223, 

12% 

413, 

38 

88% 

17% 

72% 

BB% 

40% 


1% 'Ranger Oil -I 5? s 

9% .'Reed Sleuths A... 11% 

31 IRIo Algom— 1 35% 

823, i Royal Bank ' 22% 

13% iRoyalTrustco A- 13% 


6 (Sceotre Res- , 

58 [Seagram 

16 % -shell can oil 

857* Steel of uan A— 


6 

61% 

16% 

28% 


20 

88% 

28% 

73% 

39% 

43 H 
10% 
38% 
14% 
11», 
4% 
54% 
64% 
14% 
64% 
161* 


163, 

18% 

15 

84% 


Pub. S. Indiana— | 

Purex- 

Pu rotator — 


30% touakerOats. — 


31% 

7% 

16% 

10%_ 

6% 

8% 

30% 

14% 

8% 

203, 

10% 


Quart ex — — 1 

Ouestorv 
RCA-. 


Pub. Serv. E ft &[ 1?% 


Raison Purina — | 

Ramada Inns 

Rank org. ADR -.1 
Raytheon-.-.— I 
Reading Hater— 
Redman Inds —. 
Reeves Bros—.. 
Relchhold Chem) 


317* 

45% 

18% 

31% 

87% 

85% 

803, 

80% 

sa% 

39% 

36 

60% 

14% 

147* 

43% 

713, 

82% 


81% 

26 

10% 

13% 

197, 

10% 

263, 

103, 

.48% 

19% 

83% 

30% 

9 

11% 

25% 

463, 

147* 


(Republic Steel— 
Rep of Texas — — 
(Resell Cottrell.... 
Resort Inti A — -( 

iRevoo (DS) 

Revere Copper . 

Revlon. 

Roxnord — 

Reynolds QU)— ... 
(Reynolds MU*-. 

Rite Aid- | 

Roadway Exp*.„ 
Robbins (AH).—. 
Rochester Gas 
Rockwall Intl.—j 
Rohm ft Haas- 
Rollln*. 


Union Oil Cal | 

Union Pacific 

Uni royal 

Untd Brands. I 

Utd. Energy ResJ 
US Fidelity 0—.. 
US Oypsum — .... 

US Home 

US Inds 

US shoe- — 

US Steel 

US SurgicaL. ! 

USTobanoo 

US Trust. 

Utd. Technolgs .. 
Utd. Telecom ms.| 
Upjohn — 

Varian Assoc*. 

. Vemitron | 


88% 

333, 

7% 

9% 

29% 

461b 

893, 

117* 

S3, 

24% 

833b 

18S* 

4378 

35% 

33% 

183, 

46 

Si 1 * 

89. 

9S, 


21 7* 
45% 
84% 
36% 
87% 
13% 
83% 
35% 
16% 
38% 


8% I feck B ; 

817, Texaco Canada-! 
18% Thomson News A 
86% (Toronto Dom BkJ 
18 [TransCan Pipe —I 
8% iTransMntn.OilA 
4.60 [Utd. Sisoo Mines 
14% [Walker (H) Res. J 
U, Westooat Ttnns-I 
30% (Weston (Geo) — [ 


4.80 

1.60 

2.00 

2.60 

□816 

2.40 
8.58 
3.90 

8.40 
3.55 
2.27 
4.15 
4.00 
2.05 
SJtS 
8.08 


3.53 
0.90 
1.5 0 
1.50 
0.07 
1.47 
1.05 
2L35 
1.64 
2.59 
185 
1-58 
2.33 
UJ5 
1.95 
2.40 


(ANZ Group— — 1 
Ac row Aust— — 
Ampof Pat—.—. , 
Assoc. Pulp Pap. 

Audi moo —| 

[Aust. Cons. Ind. 
Aust. Guarant—J 
Aust. Nat Inds....! 
(Aust Paper- 

Bank NSW 1 

Blue Metal- 
Bond HJdgs— 

Bo rai... 

BCville Copper.- 


5.72 

1.69 

1.50 

1.50 

0.10 

1.50 

8.00 

2.35 

1.85 

8.59 

1.25 

1.62 

285 

1.10 


iB nun bias Inds— 4 1*95 


(Bridge OIL. ] 2-40 


GERMANY 


49 

15% 

83 

17% 

49% 

39% 

86% 

39% 

30% 

39 

65% 

413* 

37% 

687 S 

42% 

36 

10% 

7% 

48 


76% 

0% 

9% 

18% 

88% 

83% 

12% 

23% 

16% 

18% 

89% 

31% 

243, 

371* 

26% 

143* 

5% 

4% 

25% 


Rolm — 

toper Corp — 

Rowan — 

Royal Crown ..—I 
Royal Dutch .. — .1 
Rubbermaid — ' 
Ryah Home* — ... 
Ryder System— 
SFN Companies.. 
SPS Technol'giet 
Sabine Corp.. — 

Safeco 

Safeway Stores -! 

St Paul Cos - 

St Regis Paper— 
Santa Fa Inds — } 
Saul Invest 


(Virginia EP — ...J 12% 


Vulcan Motris—., 
Walker (Hj Res... 
Wal-Mart StoresJ 
Warnaco 
Warner Comm*.! 
Warner- Lambt ... 
Washington Postj 
Waste Mangt.... 

Weis Mkts 1 

Wells Fargo... — 
W. Point PeppL... 
Western Airlines 
Westn. Nth, Amr. 
Westing ho use— 

Westvaee — - 

Weyerhaeuser— 


40% 

117* 

41 

25 

54% 

22% 

88% 

88% 

38% 

83 

197, 

4 

103, 

821* 

81% 

86% 


1981/82 


Mar. 5 


High | Low 


.Price 

Dm 


74^| 

499 

149 

140.2 

220 . 0 ( 


208.5 

217.5 
285 
146.5] 

67.81 

361 

384.5 
167 
818 


28% [Wheeiabratr F..J 


Saxon Indus— , 
Schering Plough.) 


Wheeling Pitta.-' 

Whirlpool 

White Consoltd-| 
Whittaker 

Wickes 

Williams Co— ..... 
Winn-Dixie Str.... 

Winnebago 

Wise Elec Power] 

Woolworth 

Wrigley ' 

Wyly - 

Xerox — 

Tallow Frt Sya ... 
Zapata 
Zenith Radio 


28% 

25% 

85% 

24% 

£5% 

7% 

19% 

31% 

4Tb 

30% 

17 

303, 

77* 

35% 

13% 

17 

12% 


297 

177.21 

180 , 
842.51 
77.0 


50.9 

295^ 

266 

138 

213 


270.1 

174 

149.5 

202.5 
69 


Indices 



NEW YORK 


-DOW JONES 


+lndustr’t& 


l887.5B'ai7A6 


H'me ends. 


Transport. 


Utilities— 


Trading Vol 
000-T 


Mar. 

5 


5SJ31 


352.32 


Mar. 

4 


.815.13 


58.21 


lD7.BsllD7.B6), 


7,140 7. 


Mar. 

3 


BB.Dti 


355.17(320^8] 


108^1 


Mar. 

8 


825.8a 


B7J2 


3E8Jffl 


10flJ7| 


67.«0b<,3WY0^S0 | 


65.8C4 


Mar. 

1 1 


Feb. 

26 


82tLSSi814.3B 


E7J65I 


337.69! 


107.7B 


51,010; 


67.37 


336.58' 


107 ja 


43,540 


1981-82 


High 


10205 

(27/0 

66.78 

(1611/91)1 

447.38 

(16/41 

117J1 

(6/1/81) 


[Sine 


i Cmpfl’t’n 


Low ( High j Low 


807J56 1061 JO 41JO 

(6/3/8!) (11/1/78) (2/7/38) 
64^1 , - - 

S22.92 447.3 8 1823 

(31 5/82) (18/4/ 81) (817/88) 
101^8 IBS JO 1BJ5 

(88/9) (20/4/69) (SB/ 4/ 4 2) 


♦Day's high 814y97 low 79B3B. 


Ind. dlv. yield S 


Feb. 26 


6.76 


Feb. 19 


6.74 


Feb. 12 Year ago (approx 


6.66 


5.66 


STANDARD AND POORS 


Since CmpU'Tn 


O 





y 


NY. S.E. ALL COMMON 


Rites and Pel M 

Mar. 5 Mar. 4 


1981 *82 



6S.H63.50B4.14M.14 J9.14 


issues Traded ..( 

Rises — *• — j 


1.074 

'477 

1,041 

356 

26 

237 


Mar. 3 


1^70 
[ 428 
1,111 
331 
25 
174 




MEW YORK ACTIVE STOCKS 



- 

Mar. 

9 

Mar. 

4. 

Mar. 

3 

Mar. 

2 

198 

High 

1-82 

Low 

AUSTRALIA 

AH Ord. (1/1/80) 

Meta] ft Minis, (1/1/80) 

AMS 

5Z6.4 

478.7 

6335 

4605 

341.1 

4885 

3435 

7375 (8/4) 

7365 (7/1/81) 

4645 (5/3/82) 
328.4 [673fS2) 

AUSTRIA 

Credit Aktien (2/1/82) 

BUG 

64.18 

5453 

34.43 

88.43 (6/1/81) 

6354 (15/10) 

BELGIUM 

Belgian SE (31/18/85) 

92.75 

84.11 

8358 

8658 

10159 (25/8/82) 

8853 (18/B) 

DENMARK 

Copenhagen SE (1/1/75) 

1Z4J1B 

18354 

125.77 

18451 

1 SB-22 (2&J2/B8) 

8558 (8/1/81) 

FRANCE 

CAS General (89/18/61) 
Ind Tan done* (31/12/81) 

1G6.4D 
118 JSC 

10 TJ 
1175 

mi 

1185 

1085 

1805 

1185 (17/3/81) 
1845 (19/8/82) 

775 (18/8) 

875 (4/1/88) 

GERMANY 

FAZ- Aktien (81/12/88) 
Commerzbank(Deo I9fi5) 

265.18 
70S JO 

23358 

7895 

2M53 

7075 

H2JS 

7885 

245.47 (3/7) 
748.8 (5/7) 

21&5S (9)2/31) 
888.4 06)2)81) 

HOLLAND 

ANP-CBS General (1870) 
ANP-CBS Indust (1870) 

88,6 

81,3 

705 

87.1 

70.4 

B7.4 

70.1 

885 (HU8) 
78.4 (22/8) 

785 (28)9) 

61.4 (22/12) 

HCNG KONG 

Hang Seng Bank (51 /7/M 

11GBJ2 

114058 

11SB.89 

1231.77 

181850 (17/7) 

111SJ7 (6 hO) 

ITALY 

Banna Comm !tal.OH72) 

2B5JH 

20158 

2B3JS 

20459 

88353 (3/8) 

188.44 (24/7) 

JAPAN** 

Dow Average (16/&/49) 
Tokyo New SE (4/1/88) 

128654 

54658 

735452 

54758 

7474.42 

68452 

7ZBM1 

64657] 

0018.74(77/8) 

60352(17/8) 

836852 (TSM1) 
4S3J8.(3/1/8Q. . 

NORWAY _ 

OsjoSE (1/1/72) 

11656 

113J0 

I 

Ilfl.lBj 11653 

148.78 (8/8) 

11054 (6/8) 

SINGAPORE 

Straits Timet (1968) 

788.29 

788.78 

7S57| 728.76 

37358 (28/8) - 

70252 (5/3/82) 

SOUTH AFRICA 

Gold (1958) 
industrial (U68) 

- 

4E9.8 

(u) 

439.1 

B44.4 

478.1 

8625 

797.8 (7/1/81) 
71 U (8/1/89) 

4385 (4/3/82) 
6375 (3/2/81) 

SPAIN 

Madrid SE (68/12/81) 

W4.69 

18456 

1D5JM 

103.58 

10755 (9/2/69) 

88.17 (S/1/82) 

SWEDEN 

Jacobson ft P. (1/1/58) 

8225! 

83853 

818.14 

813.40 

680.31 (18/8) 

404.17 (28/1/81) 

SWITZERLAND > __ 
Swiss RankCpruCBI/IZ/SB 

868.71 

288.1 

(ill 

250 J 

3045 C2/4) 

244.9 (17/11) ■ 

WORLD . 

Capital Inti. (1/1/70) ■ 

- 

ms 

1335 

134.1 

1885 (8/1/81) 

'1385 (6/3/82) 


Friday 


Exxon 

RCA 


Mobil ’’IS’SS 

IBM ]‘2S'!22 

No. !nd«. Ps- 1-007.400 


Change 

Stock* Clwing on 
traded price 
28% 

19% 

21 

58% 

11% 


1,689,500 

1,122.300 


day 
+ h 
+2% 


- h 
+ % 


Data Goner* 1 • 
Schiumbeger . 
Gen. Motors - 
Texaco ......... 

Goodyear Tyro 


Stocks Closing 
traded price 
797^00 27% 

642.800 43% 
826.100 
62%S00 29% 

684,300 21% 


on 

day. 

-4% 

+ h 
+ % 


:+ % 


(**) Set Feb 27: Japan Dew 744(146. TS E S4.15. 

Bee* viliise'of all mdinaa are tOO except Australia AN qnjjwpy anar 
ene. mySE AR fM"-"" 1 " ^ Buodinl and Poem— Mt and -Teronte U0(fc 
last named based on 1975. t Excluding bonds. I™ 

t^ntrisb plus 40 Utilities, 40 Fftsanctei* and 20 Transport*- cCJoead. 

d UnsvaOableu 


AUSTRIA 


ZSS1/82 


High I Low 


Mar. 5 


236 

238 

276 

110 

251 

267 


201 

178 

243 

91 

167 

199 


Credit’B&Ut Pfd_[ 
LaenderbanKPfd 

Peri mcoaer - ! 

Semperlt 

Steyr Daimler—.. 
Ueltscher Mag 


Price 

% 


217 

190 

260 

91 

167 

19fr 


39.9'AEG-Teief I 45.9 

420 ! Allianz Vers 454.5 

114.1 BASF. 132 

1075 BAYER. 118.8 

138 Bayem-Hypo.. — 198 _ 

302.0] 261.5 Bayem-Vereln.— | 282.5 

ITajSiBHF-Bank j 205 

143.5|BMW j 217^ 

201 [Brown Boveri—.i 321 
122.5, Commerzbank... i 141^ 

40.5 Conti Gum mi 

253.51 Daimler- Benz — . 

227.5'Deguaaa 

127.0|Demaa ! 

170.0]D'scha Babcock. 

261 IDeutsche Bank- 

136 DU Schult 

123.6 Dread ner Bank— 
178.5GHH 

64.S(Hapag Lloyd 

110 [Hoechst 

17J}[HoBsch +— ! 

268.5'Holzmann (P). 

104 Horton 

160.5 Kali und Salz...... 

177.5[Karstadt. 

130^|Kaufhof. .vJ 

163 KHD 

41.6)KJoecicner. 

46 

2B7J) 

51 

163 

122 ,4|Mannesman n — 

£20 ^Mercedes Hlg 
251 iMetallgesell ( 

610.0|MueUeh Ruck 

125J)|Preuasng — 

Z60J)fRheln West Elect\ 

258 [Rosenthal 

219.5 Schering 1 

192 .81 Si omnn*. — — 

57.7lThyssen 

lB1.6jVarta 

120_2Veba — 

268 Verelh-West 


16.75 

0.40 

7.00 
7^0 
3.08 

3.85 
0.73 
0.52 

1.85 
2.73 
3J30 
4.70 

8.00 
1.40 
4v75 
0.80 
1^5 
B.80 
1.90 
2.50 
230 
2.00 
1.76 

10.51 

130 

5.06 

330 

0.55 


7.44 (BHP— 


Brunswick Oil. 
CRA. 


GSR.. 

Carlton ft Utd — 
Castlema/neTys- 
Cluff Oil (Aust).- 

Do. Opto - 

Cockbum Cemt 

Coles (GJJ. 

Comalco..— 
Cottain — . 


(Crusader On...— [ 

(Dunlop.— , 

2.85 fkler Smith GMJ 
0.24 Endeavour Res— 
Gen prop Trust...] 
Hartogon Energy} 

Hooker 

IC1 Aust.— . 

Jennings . 

Jimb'lana(50cFP) 
iones(D). 


129 

27.81 

450 

150.0 

280.fi! 

237 

184.5( 

220 

68 

76.0^ 

358 

783! 

234.51 
166 

328.51 
33731 

700 

824 

181 

386 

311 

269.0] 

86 

BID 

14531 

286.0' 


117 

26.1 

436 

113.4 

168 

192 


i.bjKJoecKner. 

i iKrupp 

7.0 Unde J 

L Lufthansa 

s.bIman 


180.0] 1193[Voilttwagen. — | 


143.5 
189 

65.5 

65.5 

315 

703 

181 

142.5 
260 
259 

6883 

198.6 
165 
262 
289 
2213 

86 

183 

128.7 
281 
150 


0.66 

235 

3.62 

4.00 

1.75 

4.15 

2.78 

1.70 
11.90 

0.41 

2.55 

0.58 

2.95 
8.06 

1.95 
0.80 
030 

2.70 
233 
4.10 
0.88 
1.14 
5.90 
335 
230 
4.30 


1.40 

336 

1.12 

1.06 

0.90 

0.36 

1.40 

039 

031 
2.56 
1.40 
0.15 

0.12 

130 

2.43 

130 

138 

2.05 

1.30 

0.60 

1.77 

0.10 

13B 

0.08 

1.70 

4.08 

0.72 

0.28 

032 
132 
1.95 
1.46 
0.16 
0.66 
336 
0.70 
1.50 
230 


Kla Ora Gold —| 
Lsnnard OIL.. 

Moekatharra M» 
[Meridian Oil - — I 

Monarch pet ' 

Myer Emp — — 

NotBank. 

.News. — — ! 

Nicholas Int 

North Bkn Hill— 

lOakb ridge 

(Otter Exp I 

Pan con - — ; 

Pan Pacific 1 

Pioneer Cone 

Queen Margt G- 
Rookitt ft Coin—. 

Santos... 

Sleigh 

Southland M'n'g^ 
Sparges E*Pl 
Thos Natwlde— .. 

Tooth — 

UMAL Cons 

Valiant Consdt.. 

Waitona Bond 

Western Mining. 
WoodsJde Petrol. 

Woo /worths.. 

Wormald Inti. 


5INGAPORE 


1981/82 
High LOW 


9.80 

5.40 

9.85 

7.60 

5.55 

430 

930 

7.75 

16.5 

5.05 
15.70 

6.14 


2.14 


Mar. 5 


iBoustead Bhd— .. 
238 [Cold Storage — 

530 DBS- - 

4.64 Fraser ft Neave...| 

2.75 maw Par 

1.63 Inchcapa Bhd..-: 
4.60 Malay Banking— 

430 Malay Brew 

Iocbc 

Si me Darby -' 

Straight* Trdg 
UOB 


8.40 
2.16 

6.40 
2.77 


BELGIUM/LUXEMBOURG 


FRANCE 


SWEDEN 


1981/82 


High 


1,620 

3,000 

2,100 

1,845 

206 

2,060 

4,740 

2,860 

2,630 

1,640 

1,900 

3.520 

1,600 

6,130 

6,350 

5,200 

5,700 

2,706 

1,576 

8,625 

2,460 

2360 


844 

1390 


Low 


840 

a,70o 

990 
816 
115 
1,158 
2,536 
2320 
232 S 
900 
1,182 
(2,060 
914 
13,316 
14,006 
13,660 
S, 600 
1,540 
860 
|2,0I0 
S,440 
1,060 
960 
484 
980 


Mar. S 


ARBED 

iBank Int A Lux -I 
Bekaert ft— 

Ciment CBR 

Cpokerill 

EBE8- 

Elect robe I .... 
Fabrtque Nat , 

G.B. Inno — 

GBL (Brux U) 1 

(Gevaert J 

Hoboken ' 

'Intercom 

Kredietbank... 
PM HWgs 


Petrofina — ... — 
iRoyaJe Beige..... 
Soo. Gen, Bang .. 
(Soc. Gen. Beige-] 

Soflna- 

(Solvay - 

Traction Elect-. 
UCB 


Union Miniere.... 
Knell lo Mont 


Price 

FIs. 


- 1981(82 
High | LOW 


Mar. 6 


Price 

Fra. 


1981/82 
High | Low 


1,480 
3,960 
2,790 | 
1340 
174 
1,820 
4,070 
2,220 
2325 
1,605 
1,610 
3,310 
1,400 | 
4,740 
5,700 

4)520 

5,200 

2,650 

1450 

3,260 

2,040 

3,305 

1,770 

762 

1,660 


332S| l,636l Em prunt%* 1873 1,723 


10,950 5^30[Eihprunt75Sia75J5330 


3,288 2,680 CNE HU 

519 57Q Air Uquide 

2 12.5 933 AcquitAine 

151 83.8[au Printempt .~ 


2,760 

462 

138 

150.5 


588 I 
220 I 
1^10 
1,494 

5^ 8 | 366^5 
633 1 340 
496.5; 252 


403 153 


366 [BIC. 

BS.fi'Banq’ Rothscniw 

537.0!Bouygue* 

858 jBSN Gervais. ! 

1,502 Carref ou r— .—...! 
CJubMediter- 

tCFAO 

IcgeZ — 


C8F (ThonuoR)— j 216 


420 
197 J! 

774 

1,342 

1,530 

646 

585 

493.5 


310 

420 

154.0] 

286.51 

93 

24SJB\ 

32.2 

an 


127 

235 


Cie Bancaire— — j f04 
Cie Gen Eaux — 306 


lOS.lteoflmeg — ' > « 


109.1 

S1.4j 


90J5toFP 


27.4| 

760 

395 


[CCF -BM.S 

[Creusot Loire— 77 


248 

218 

2001 

392, 

134 
323 
287 

136 
236[ 
197i 
217 
112 
206 

169 
260 
590 
290 
165 
354 

137 

135 

170 


188 

Tt 

230; 


Mar. 5 


Price 

Kronor 


AGA— 
Alfa-LavaL. 


.ASEA (Free) ... 

I Astra 

76.6[Atlas Copco- 

104jBollden 

i25>Ceiiulosa 

76.6 Electrolux B- 

104 Ericsson 

125]Esselte (Free) 


DNEL 


126 

47.7 


7aFagBrstn — . 
30'Fortia (Free) — ... 

104'Mooch Dom 

76]Saab-Skania 

166 &&ndv! k (Free) - 

215 SKandia- 

lillskan EnskJIda .J 


84.5[ 

207 

S4| 


SKF B~ 

St Kopparberg.J 
Sven Handelsbn. 1 
9Z Swedlsh Match-1 
65] Volvo (Free)—. ..-i 


218 

212 

188 

392 

126 

230 

250 

91.5 

209 

141 


170 

109 

152 

136 

225 

622 

228 

143 

330 

113 

125 

151 


Dumez. MOD 

iGen. OcddentaL 395 


SWITZBtLAND 


1981/88 


Mar. 5 


65 

246 


flmetai. 


DENMARK 


1981/82 
High | Low 


133,0 

415 

142. 

420 

142 

175*4 

64& 

462. . 


282A 

287.5 . 
180 JO 
1,645 
105.0 
149.4 
137 
312 J) 

696.6 
175 


1164! 

(312.6 

118.0 

[328.6 

113.4 
11 OJS 
‘406 - 

240.0 

185 

164.4 

187.4 

1680.0 
87 

102.4 
119 
'289.2 
591 
illS^ 


Mar. 5 


Price 


Lafarge ! 

SSOJOjL'Oreal 

2,165 Leg rand— 

2 5.4, Machines Bull.... 

632 Mot ra— - 

&OSI Michel In B. I 

377,8[Moat-Hen nessy.- 
49,5 Moulinex ( 


125 

J40S 

142 

[365 

142 

722 


[Andelsbanken.— ! 
Baltics Skand .. 
ICopHandelsbankj 
D. sukkerfab...-. 

Danske Bank 

|E*«t Asiatic 

Fore node Brygg.»S3 
jFormede Damp^432 

|GNT Hide 1.1277 

Jycka Bank J 

Nord Kabel 7 

(Novo Ind,... 

Papltfabrlkker_ 

iPrivatbanken— . 
Provlnsbanken.- 
Smidth (m 

jS. Berendsen —1 

[Superfos - 


191 

140 

1.485 

94 

'149^ 

129.6 

(251 

[505 

118.4 



Paribas — . 

Peehlney. 

[Pernod Heard _. 
Perrier 

Peugeot ^A . 

Podaln 

Radloteeh 

Redouts 


4 5.&[ Rhone- Poulenc 
151.1 Rouesd-Uclar 


[St Go bain - 

Skis Rosslgnd 

[Sue* 

Telemeoh Elect! 


[Thom son Brandt! 


Valeo i 



Low 


520|AVusui5SO— — 
900 Brown Boveri— 

970 CibftGejgy 

755 do. /Part Corts/^ 
l,770|cradit Subue. — 

2J236] Elektrowatt 

4S0[ Fisher (Geo) 


Price 

Fr*. 


520 

980 

1,265 

970 

1,770 

2^20 

485 


j56,250 Hoff •RocbePtCtsiGQ ,000 


5,625 Hof f-Roohe 1/10.1 

6,100 Interfood- 

1,140'Jelmoli 

1,020 Landi* ft Gyr— . 

2,829 Nestlfc 

l,110[Oer-Buehrle..— 

SOElptralll 

5,350'SandoK (Bri 

430 SandO2 (PtCts)-., 
33SrSchindler (Pt Cts) 

612|SwiS8alr- | 

29l|Sw!*s Bank 1 

5,850 Swiss Rain *e a 

820 Swiss volksbk 

8,765 union Bank— , 
2,060 Winterthur — ' 


6.975 

5,275 

1250 

1,030 

3,130 

Liao 

217 

4.150 
502 
244 
673 
303 

6,000 

860 

3,060 

2.150 


6,675|2ui1ch In/L. I15J50 


SlOiHItnchi 

501 Hitachi Kok<... 

511. Honda 

819'Hou&o Food - . 

TlOHoya 

300,lt0h >Ci .. 

385,1 to Ham 

VBOilto-Yokado ■ 

305 JACCS 

Z^aa jal 

590'Jusco 

27a,Ka|inia 

432 Kao Soap. 

619'Kasliiyama 

327 Kikkoman - 

400 Kirin. - 

915 Kokuyo 

532 Kon 1 . 1 t mi 

507;Komatsu F'lft.. .. 

503!KoniBhroikU ' 

336 Kubota - 

325 Kunugia , , 

4,9001 3^150 Kyoto Ceramic- 3,3 W 
564| 3 58 1 U on 385 


613 
515 
nb5 
990 
709 
302 
39 1 
77t> 
499 

2.5MO 

595 
3bU 
538 
7B0 
375 
41 ti 
920 
445 
512 
591 
33b 
410 


bss! SSDiMaetla Cons 595 


1,010! 

3991 

7081 

1,0201 

1,930; 

7401 

5951 

739[ 

489' 

496 

328' 

398) 

660; 

5021 

559| 

1,950 

1,040! 


736MaWta .... 

501 'Marubeni 
SSOIManidRi . 

72B)**arul 

79S 1 Matsushita... 


smi\ 

5101 

1,500: 

1,060 

233 

320i 


SOT.nrta Elec work* 

SSBM'bishi Sank 

650'M'biihi Carp * 

209 M'bieh/ Elec 

591 M'blshi Rl East... 

186'MHI 

290 Mitsul Co 

497,M<tsui Rl Est 

392 Mitsukoshi 

400. NGK Insulators... 
8<0;Nippon Denso .. 
671. Nippon Gakki 

375 Nippon Meat 

804 [Nippon Oil 

680iNlppon Shlnpan ' 

139 .Nippon Steel 

201 1 Nippon Suisan 

unnluvu 


739 
302 
600 
040 

...1,050 


SOB 

500 

581 

256 

449 

271 

5L1 

604 

400 

482 

958 

691 

592 

1,030 

B9S 

167 

231 


4,95ffl 3,800 !nTV 4,505 


1^201 
450| 
226! 
780 1 
379[ 
1,770, 
1.540 
4,500! 

890 

1,1301 

723' 

B79| 

862 

1,010 

941 

5,7801 

5451 

351 

730| 

289 

774! 

1 , 100 ] 


740 


334 

152 

480 

288 

890 


700.Nluan Motor 

315lNlsshln npur...._: 
142'Niashin Steel.—..; 

368 Nomura.. 

279, NYK. 

885 (Olympus. 

l.OOOlOrient 1,310 

1,410‘Pioneer 1 1.430 

600:Renown- — .... 1 

58l!,Rleoh'- 

379iSanyo Elect—— 

23l|Sapporo - I 

582iSekisul Prefab...; 

645'Sharp 

79l!shlaeido.— ' 

3,020 Sony 3,190 

356 Stan ley.. — — | 358 

26l!s'tomo Marine -| 290 
535,7011101 Dengyo.... 565 

199|Tal*el Corp 290 

5Bl>Tat*ho Phorm— 583 
6lBiTakeda - 


739 

585 

435 

255 

680 

741 

802 


5,490] 3,060 iTDK- 


H70[ 

Liao] 

565[ 

701 

995 

132 

643 

241 

626 

6601 

495: 

1,640, 

4,380 

860 

1,210 

651 

378! 

705 


211 Teijin.... 
565tToikoku Oil-. 




915 
.,3^20 
1 S13 
772 


385 TBS 

452 Tokyo Marine— ..[ 
800 Tokyo Eleet.Pwr.; 
103 Tokyo Gas- — ! 
440 Tokyo Sanyo,—! 

147,Tokyu Corp ] 

214 Toshiba 


408TOTO 1 

Ikon 1 


469 

457 

950 

114 

465 

212 

334 

413 

424 

912 


390.Toyo Selkan 

724 .Toyota Motor— 

2^10, Victor. 2,180 

690[Yamaha 1 

BlOTamazkla [ 

237iYa*uda Fire - 

497'Yokogawa Bdge.i 


701 

559 

239 

578 


SOUTH AFRICA 


1981/82 


High 


4.55 

10 

18.45 

133.0 
3.85 
11J2 

57 .25; 
- 8 
3.05 
10^0 
37.25 

65.00 
110 

5.651 

9.751 

43.75] 

6.7$ 

24 

3.7 

12.1 

5.8 
7130 
3.05 
5.15( 
22 

4.05i 


Low 


Mar. 5 


Price 

Rand 


7.52 
22.5 
29 


2.80(Abereom. * 3.15 

7.40 ABACI. — I 7.65 

12.9 Anglo Am- [ 12.9 

78 [Anglo Am. Gold.. 1 78 

l.OO'Anglo Am. Prop— 2.55 

9.10 Barlow Rand < 9.15 

34.25'Buffelc I 34.75 

4.85;cNA Invest ' 7 

1.90 Currie Finance.-’ 2.2 

7.52lDe Beers — 

22.5 IDriefontein — .... . 

29 iFS Geduld- 

54.0 Gold Field* SJL-[ 60.5 

4^M)[Hlghveld Steel- I 4.2 
5.70 Huletto — I 

28.00 Kloof • 

5.30'Nedbank 

15.DOOK Bazaars — 

2.80‘Protea Hldgs ; 

6.35 Rembrandt — 

3.00:Rennie*. ' 

4.0 [Rust Plat 4.00 

2.Q0 Sage Hldgs • 2.4 

3J55 SA Brews. — | 4.45 

lS.QOTifler Oats. 1 17.5 

2.60iUnisec - - 3.05 


8.4 
28 

5.5 
17.76 

2.75 
6JB 

4.75 


Financial Band US$0,731 
(Discount of 28%) 


BRAZIL 


1981/82 
High Low 


Mar. 5 


I Price 
I Cruz 


1.90 
12.65 
4 J3&! 
9.00| 

10 . 10 ; 

9S5\ 

12.50 

13.45] 


0.76'Aceslta 1 1.82 

5 J05 Banco Brasil—... 11.60 

1.80 BelHO. Min ; 3.70 

2.80 Logos Amer— . B.80 

2. 12 Petrobras PP : 9.90 

2.05 Souza Cruz 1 8.99 

4^5 Unip PE. - 12.50 

4.60;Vale Rio Docc.... 12.00 


BLETCULORDf 
ROCK DAJRHAM 


Following the placing of 3m 
ordinary shares, Bietchlord, a 
private company controlled by 
Mr R. A. Clarke, announces that 
it has completed the acquisition 
of 3,000,001 ordinary shares in 
Rock Durham from Mr Julius 
Darham. Accordingly Mr Clarke 
and his associate, Mr A. F. Baker, 
have been appointed to the board 
and Mr Darham has resigned. 


SHARE STAKES 


Albert Fisher Group— Follow- 
ing -interests are notified: A. B. 
Millar beneficial 289,054 (7.23 
per cent); Derway Finance Bene- 
ficial 289,053 (7.23 per cent): 
P. D. Brown beneficial 466^07 
(11.65 per cent) and non bene- 
ficial 80,000 (2 per cent), 

Marler Estates— Mr R, P. B. 
Noonan, director, has acquired 
40,000 ordinary shares. 

Allied Colloids Group— On 
November 13 1981 G. Whitehurst 
sold 3,000 shares at £1.44. On 
February 26 1982 J. Binnie sold 
4J200 shares at £L76. On 
February 12 19S2 A. K. Harrison 
sold 1,50 Oshares at L74. 


quoted on the Indhrldusl^exchAnaes 
end sra law traded prices. # Dealings 
suspended, xd Ex dividend, xc Ex scrip 
Issue, xr Ex rights, xe Ex elL 


If 


-v| 


S 









24 


financial Times Monday MarcS 


As used herein: 


“Ihg Company" 
“Tadefele" 


moans R H. Industrials RLC. (previously felled Dhamai Holdings P.LCJ, 
means Taddale investments RLC.. 


means Plaionoff a Harris limited, 
means the Company and us 


•Sinlajgea Group" 

This document includes particulars given in compliance with the Regulations of the Council of TheStock Exchange for the purpose of giving information with regard to the •, . 

..41V'. Ehh«nM. *n0<5 rtm u _u i:.*, I ha faiMr-etoiarl homln. SlTf? fa HlB CffCUlar lO SharBfiCfcferStidltiU TOtn February Jgo 1 ^ 


ThB Directors ohfia Company in cilice on 1 0th February. 1982 and the proposed Directors Ol the Company named below have taken aH reasonable careto ensure that the facts stated btectom acc^ responses^ 

Company and itssubsidBries on that data are true and accurate in ail matensi respects and that tflereara no other tnaierial tacts the omission ot which would make misleading any such statement herein or tneran, ’ _ ^ ^ - te ^^^«| WO m jcdfvi rf 

The Qrtolora of Thddate have taken aUreasoraMeOTe to ensure that the fcets staled herdn, end fa the atwve-mentiontoCircuter, in 

wnfcnttouldmateemisleadinganysuchstatementhereinorJherein.v.hetherofiactoropinKjn.AiitheDirsctoreofTaddafeacceptresponsiDiur/accorair^^ __ 

Application has been made tottra Council of The Stock Exchange for the Ordinary share capital of the Company already in issue and now to be issued to bsadmilted ^ ^ . -jeipaS Ordinary 

red into a conditional agreement Hhe Acquisition Agreement") to acquire From Taddale the whole of the issued share capita! Of Platonoff in consideration qrthe-sumor £*50000 ^TOoeCTnsRWiyuyesaJfi iott, * 00 ^^ 



^ICdUyUOLUmOd Wl Ii™ oumiuku » U Ivr ill iiwi i iiqiu Mginivw kv# bii«i> i hi 101 CVII UJ IIIGtSailCI W k-wwj iniwu ,VWI "" " - 1 j i 

Companyinclude Platonoff. Following completion ol the Acquisition Agreementthe present Directors will reagn tram ottice and the new Board of Directors will consist ol the persons specniea osow- . 

“(he Directais’are references to (he Board as so reconstituted. 


PH. MDUSTRIALS RLC 


(formerly Dhamai Holdings P.LC.) [Registered in Scotland, No. 46664 ) 


DIRECTORS 

MICHAEL RICHARD CARLTON (Chairman). 
Albert Lodge, 1 8 Victoria Grove, London W8 5FtW. 

TED PLATONOFF- 
34 Westlands, Comberton, Cambridgeshire CB37EH. 

JOHN ALAN HARRIS, 
67 Long Road, Comberton, Cambridgeshire CB3 7DG. 

ALAN RICHARD GALE, 
47 Metbury Road, London W14 SAD. 

ANTHONY ROBERT JOHN CARTWRIGHT F.C.A., 
The Willows, Westoott Street, Wtestcott, Near Dorking, Surrey RH4 3NX. 

DAVID WALSH. LLB, 
33 Bam Hill, Wembley Park, Middlesex HA9 9LF. 

SECRETARIES, REGISTRARS AND REGISTERED OFFICE 

SC0TT-M0NCR1EFF. THOMSON & SHIELLS, 
Chartered Accountants, 
17 Melville Street, Edinburgh EH3 7PH. 


; originally engaged in the manufacture of high quality joinery for the building 
f the work being carried out for building projects in and around the City or 


HISTORY AND BUSINESS 

7. The Company 

The Company was incorporated in Scotland as a private company on nth June. 1 969 for 
the purpose of acquiring the whole of the issued share capital of The Dhamai Tea Company 
Llmaed. a public company incorporated in Scotland. The Company became a public company on 
SOIhr June, 1969 and was re-regislered as a public limited company on 30th December, 1 981. 
FollcAving this acquisition the portfolio of quoted investments belonging to the Dhamai Tea 
Company Limited was transferred to another whoUyowned subsidiary of the Company, Sonarupa 
Investments Limited. 

The principal activity oF The Dhamai Tea Company Limited was ihe operation of a tea 
planting business in Bangladesh. This business was run in a profitable manner until 1 97 1 when 
Bangladesh seceded from Pakistan and although the plantations continued to make profits it 
became apparent that their continued profitable operation could not be sustained without the 
injection of fresh capital from the United Kingdom, in 1976 the tea planting business comprising 
the lee estates, equipment and stock were sold to a local purchaser tor payment in Bangladesh 
currency and the assets of The Dhamai Tea Company Limited (renamed The Dhamai Tea 
Company RLC .) are now limited to cash balances which are subject to deputed tax claims in 
Bangladesh and to exchange control restrictions there. 

The value of the portfolio of listed investments held by the Company-and its then 
subsk5ariesasat31st October, 1981 was £252,250. 

On 1 9th November, 1981 the listing of the share capital was temporarily suspended by the 
Council of The Stock Exchange at the request of the Company. Details of the proposed acquisition 
of Platonoff were sent to shareholders of the Company on 10th February. 1982 and at an 
Extraordinary General Meeting of the Company held on 5th March, 1982 resolutions were passed, 
inter .a/fa, approving the acquisition, increasing the authorised share capital to £550,000, 
sub-dividing the Ordinary Shares into shares of 25p each and for the Company’s name to be 
changed to “R H. Industrials RL-C". This change of name became effective on the same date. 
Fdrthsrdetailsof the Acquisition Agreement are setout under “General information 1 ' below. 

Z Platonoff 

Platonoff was incorporated in England as a private company on 10th October, 1957 and 
became a wholly-owned member of toe Taddale group in May 1979. 

Ptetonotf was t 

industry, the bulk of the _ . 

Cambridge. In the late 1 960's the company expanded the scope of its business on the strength of 
its established workforce of craftsmen and Ihe wide experience in the shopfitting and allied fields 
of Mr. T Platonoff. who joined the company at that time. Since then, the company has increasingly 
concertrated on the production and installation of specialist joinery and metal and other fittings for 
shops, hotels, banks, offices, showrooms, museums and exhibitions. The company has under- 
taken work for leading hotels and retail stores in London, for embassies and tor substantial 
commercial and professional firms. It is also a supplier to the Department of the Environment and 
a nominated sub-contractor for a number of leading companies. 

Asignificantdevelopmentsince the late 1 96Q's has been the introduction by the company of 
a high impact PVC faced door and frame specifically designed to be installed in places where a high 
standard of hygiene is required and where heavy usage would occur These doorsets comply with 
the requirements of the Department of Health and Social Security and have been supplied to a 
numberof large hospitals as well as to anumber of laboratories and food preparation companies. 

Ratonoff operates from new purpose built factory and office premises in Cambridge with a 
. total floor area ot 20.700 square feet These premises, which ware acquired in October, 1 981 from- 
■ anothermemberof the Taddale group, are held under a recently re-negotiated lease lor 125 years 
from Cambridge City Council in favour of Platonoff at an initial annual ground rent of £5,500, 
subject to adjustment at 10 yearly intervals to 15 per canL of the rack rent. Part of ihe office 
accommodation has been sub-let to another company in the Taddale group at an initial market 
rent of S4, 050 per annum subject to review at 5 yearly intervals. A, J. Hines & Co., Surveyors and 
Valuers, have valued the premises on an open market basis as at 2nd February, 1 982 in the sum of 
£530,000. 

The company has some 45 employees, and labour relations are excellent. For the year 
ended 30th April, 1 981 its turnover was £1,025,371 . Since the company joined the Taddale group 
its annual pre-tax profits, before management charges, increased from £27,310 to £158,827. 

DIRECTORS AND MANAGEMENT 

Following completion of the acquisition of Platonoff. the Board of the Company will consist of 
Mn M. Ft Carlton, Mr. T. Platonoff, Mr. J. A. Harris, Mr. A R. Gale, Mr. A R. J. Cartwnght and Mr. D. 
Walsh. 

Mr. Carlton, aged 38, is the Chairman oFTaddale and he will becomechairman of the Board of 
ihe Company. He has been a Director of Taddalesince 30th April, 1980, and has been involved inthe 
management of Platonoff since February, 1 978. He is a Director ot Munton Brothers P.LC., a listed 
company irt which Taddale has a substantial shareholding. 

Mr. Platonoff, aged 55, is the Managing Director of Platonoff and has been with that company 
for 15 years. He has been involved in the cabinet making and joinery Industries throughout his 
working life. The subsidiary has effected term assurance on the life ot Mr. Platonoff in the sum of 
£350,000. 

Mr. Harris, aged 48, isthe Works Director of Platonoff and has been with that com party since 
19J2. Fte has been involved in the joinery industry throughouthis working life. 

hfr. Gale, aged 35, became a Director of Taddale in May. 1 981 and was appointed Managing 
Director of that company in November, 1981. Over the previous fifteen years Mr. Gale had been 
employed by various organisations in the fields of investment analysis and financial management. 
He wilmave particular responsibility for the Enlarged Group's corporate financial affairs. 

Cartwright, aged 4 2, isaCharlered Accountant and has been 2 Director of Taddalesince May, 

1 979, where he is primarily concerned with financial control. Prior to 1 979 he was in private practice 
and was-the finance director of a listed company. He is also a Director of Munton Brothers P.LC. 

IVfc: Walsh, aqed 44, is a Solicitor, and has been a Director of Taddale since April, 1974. He will 
serve on toe Board ol the Company in a non-executive capacity. 

Group policy and planning will be the responsibility of the Board of the Company, with the 
business operations of Platonoff under the immediate direction of its Managing Director. The other 
mem bees of management have been with Platonoff for a number ol years and include Mr. D. 
Thomas, aged 3B, who is the Chief Estimator. 

Details of Mr. Platonoffs and Mr. Harrisf service agreements are set out under “General 
Information" below. It is not intended that any of the other Directors of the Company should have 
service contracts. 

The Directors will be giving consideration to the introduction of a share option scheme for 
executives and employees ofthe Enlarged Group* details of which wiU be submitted to shareholders 
for their approval in due course. 

ASSETS AND PROFITS 

There is set out below a pro forma Statement of the Net Tangible Assets of the Enlarged 
Group which, on the basis mentioned therein, shows that the notional combined net assets are 
£638,414 which.after allowing for the Preference share capital, represents approximately 32p per 
OrdinaryShare in the increased capital. This reflects the net assets of the Company ana its sub- 
sidiaries fexcluding PlatonoiQ as at 31 st October, 1 981 of £445,496 and the net tangible assets of 
Platonoff of £292,518 as at the same date, after deducting the estimated expenses of the 
acquisition and the re-listing of the Company's Ord inary share capita] and making the adjustments 
shown inthe notes to the Statement 

Further information is set out below regarding the results of the Companyfor the five years 
ended 3ist December 1980 and for the 10 months ended 31 st October, 1 981 .me Accountants' 
Report below shows the results of Platonoff for the five years 1 0 monthsended 31 st October, 1981. 

There is also included in the Accountants Report a statement of the source and application 
of funds for Platonoff. 

PROFITFORECAST 

Tte Directors consider that, in the absence of unforeseen circumstances, ihe combined 
profits, before tax, of the Enlarged Group for the financial period ending 30th April, 1982, wiU tie 
notJess than £261 ,000. 

The foregoing forecast indudes the anticipated results of Platonoff for the 12 months 
ending 30th April, 1982 and the results of the- Company andte otter subsidiaries for the 
16 months ending on that date, and have been prepared on the basis of the following principal 
assumptions- 

CaJ there will be no major disruption of production due to fee interruption in fee supply of 
raw materials or services orferough industrial disputes; 

Cb) there will be no restriction on fee free flow of imports in respect of raw material 
requirements; 

[c) there will be no restriction on the free flow of goods or sen&es In respect of export 
sales; 

Cd) there win be no material changes in legislation adversely affecting tfteEnlarged Group's 
products Or markets in which it operates; 

Ce} the present level of interest rates will remain substantially unchanged; 

(0 them win be no major escalation in fee present rate of inflation In fee United Kingdom, 

The following are copies of letters received from Creasey, Son & Wickenden and from T. C. 
Coombs&Co. and Sternberg, Thomas Clarke & Co. in regard to the above profit forecast 


SHARE CAPITAL, 

Authorised issued and now to be issued fully paid 

£ £ 

21,750 In 5 par cent. Cumulative Preference Shares of £1 each 21,750 


528,250 in Ordinary Shares of 25p each 


£550,000 


486,072 

£507,822 


BORROWINGS 

On 1st march, 1982 fee Enlarged Group had a secured term loan of £277,500 repay- 
able by instalments over the period to 31st December. 1090, hire purchase commitments oF 
£2,882 and a secured guarantee fto be released on completion of the Acquisition Agreement) 
ot the bank indebtedness of fee Taddale group which at the close of business on such date 
amounted to £ 1 ,632,852. Save as aforesaid and except for intra-group borrowings and 
guarantees, no member of fee Enlarged Group had at that dale any loan capital oulstandina or 
created but unissued, or any borrowings or indebtedness in the nature of borrowings, 
including bank overdrafts and liabilities under acceptances (other than normal trade bills) or 
acceptance credits, mortgages, charges, hire purchase commitments, or guarantees or other 
material contingent liabilities. 


STOCKBROKERS 

T.C. COOMBS&CO., ■ _ 

5-7 Ireland Yard, London EC4V 5 EE, and at TheStock Exchange, 
STERNBERG, THOMAS CLARKE &CO-, - _ 

Provincial House, 21 8-226-Btehopsgate, London EC2M 4QD, 
and at The Stock Exchange 

BANKERS ’ . 

NATIONAL WESTMINSTER BANK P.LC.. ' . 

1 30 High Street, Tonbridge, KentTN9 1 DE. 

THE ROYAL BANK OFSCCfTLAND LIMITED, - _ 

St. Andrew Square Office, 36 SL Andrew Square, Edinburgh EH22YB. 

SOLICITORS 

FRERE CHOL^ELEY, 28 Uncolrfslnn Fields, London WC2A3HH. 
LINDSAYS W. S.. T Rothesay Terrace, Edinburgh EH3 7UR 
To Taddale: 

DURRANT PIESSE, 73 Cheapside, London EC2V 6ER 

REPORTING ACCOUNTANTS AND AUDITORS TO THE COMPANY 

CREASEY, SON & WICKENDEf^ . : 

Chartered Accountants, \ ■ 

1 East Street, Tonbridge, Kent7N9 1HR 


The Directors, 

P. H. Industrials RLC. 
17 Melville Street, 
Edinburgh EH37PH. 


. Creasev, Son & Wlckenden, 

1 East Street, 

Tonbridge, 

KentTN9 1HR 
8th March, 1982. 

Gentlemen, 

We have reviewed the accounting bases, assumptions and calculations for the combined 
profit forecast (for which the Directors of your Company and of Platonoff & Ham's Limited are 
solely responsible) of P. H. Industrials RLC. and its subsidiaries and of Platonoff & Harris Limited 
(together “the Enlarged Group") for the financial period ending 30th April, 1982 contained inthe 
Particulars dated 8th March, 1 982. 

in our opinion the profit forecast, so far as fee accounting bases, assumptions and 
calculations are concerned, has been properly compiled on the footing of the assumptions made 
and is presented on a basis consistent wife fee accounting policies normally adopted by the 
Enlarged Group. 

Yoursfaithfully, 

CREASEY, SON & WICKENDEN, 

Chartered Accountants. 

Sternberg. Thomas Clarke & Co., 
Provincial House, 

21 8-226 Bishopsgate, 

London EC2M 4QD. 

8fe March, 1982. ■ 


The Directors, 

P. H. Industrials P.LC. 
17 Melville Street, 
Edinburgh EH37PH. 


TC. Coombs&Co., 
5-7 Ireland Yard, 
London EC4V5EE 


GentJemen, 

We have discussed with you and fee Directors of Platonoff & Harris Limited, and with 
Creasey, Son & Wlckenden, fee combined profit forecast of P. H. Industrials RLC. and its 
subsidiaries and of Platonoff & Harris Limited for the financial period ending 30th April, 1982, 
together with the assumptions on which it is based, set out in the Particulars dated 8fe March, 
1932. Vfe consider feat fee profit forecast (for which the Directors of your Company and of 
Platonoff & Harris Limited are solely responsible) has been made after due and careful enquiry 

Yburs faithfully. 

T.C. COOMBS&CO. STERNBERG, THOMAS CLARKE & CO. 

DIVIDENDS 

Commencing with 1982 the Company wiU be adopting 30th April as the accounting date 
for fee Enlarged Group, in the light of the above profit forecast, it would be the intention of ihe 
Directors to recommend a dividend on the increased Ordinary share capital of not less than 3.5p 
(net) per sharefor the financial period ending 30th April, 1 982. If approved by the shareholders at 
the Annual General Meeting, this dividend is expected to be paid in October, 1 982. 

The fixed dividend on the Preference Shares will continue to be payable by half yearly 
insfalmentsin Decemberand June. 

FUTURE PROSPECTS 

Plans are now being drawn up to increase production capacity by fee relocation of fee 
architectural metal working department of Platonoff in other premises. The Directors wilt also be 
considering fee possibility of the acquisition of otbercompanies or businesses in similar or related 
fields. 

Over fee last five completed years the proportion of Pfatonoffsannual turnover attributable 
to orders from government departments has been on average approximately 25 per cent, and in 
the current year to April 1982 it is expected that this will rise to over 60 per cent The planned 
expansions the business to take advantage of fee present unfulfilled demand tor the company's 
products and services should lead to a reduction in fee percentage attributable to government 
work. This additional .unfulfilled demand is expected to cover fee anticipated increased costs to be 
incurred in a full year resulting from fee acquisition in October 1981 of fee new Cambridge 
premises. 

WORKING CAPITAL 

Having regard to the confirmation received from National Westminster Bank P.LC. that 
overdraft facilities of £1 50,000 will be made available to fee Enlarged Group, the Directors are of 
the opinion that fee Enlarged Group has sufficient resources to meet its present working capital 
requirements. 

FINANCIAL INFORMATION RELATING TO THE COMPANY 
1. Summary of Profit and Loss Accounts 

The fo towing is a sum maryoM he consolidated results of the Company and its then subsidiaries for the. 
five jrears ended 3tsf December 1 530 and fbrifte 10 months ended 31st October. 1981, based on the audited 
consolidated pratitand toss accounts. 

10 months 
ended 31st 
October . 
1980 1931 

£ £ 


ACCOUNTANTS' REPORT RELATING TO PUCTOMOFF 

The following is a copy of a report onPtatonaff received from Creasey, Son &Wtokend9D.pnilH6d 
Accountants. 

The Directors. 9^^^ l&Wk * BQden ' 

P. H. Industrials RLC* 1 E ast St reet, 

17 Mehnlle Street, r Tonoidge. 

Edinburgh EH37PH. . - ‘ ' KbntTN9lHP. 

T.C. Coombs &Oo,' 

Stemberg.ThomasGtarka&Co, 

c/o 5-7 Ireland Vfcrd, — 

LondonEG4V5EE. 8 fo Match. 198ZL 

Gentien^have accounts of Platonoff & Harris Limited fPIafonofT) tor fee tiro ye ars ten 

months to 3 1st October; 1 981. Wa have acted as auditors of Platonoff for all periods of acco unt, exceotlorlhg. 
twelve months ended 8 th January, '1977, these accounts having been audited by another Ann of Cnaruwal- 
Accountants. 

The summarised profit and :ioss accounts, balance sheet and statements oF source and appUcaftm of 
funds of Platonoff set out below are based on the audited accounts after making such adjustments as w 
consider appropriate. They have beenprepared under the btsforicaT cost convention. Thecurrent cost accounts 
in respect ol the eighteen months to 3Tst October, 1981 eraaiso included. 

1. Accounting PoSole* 

fa) Deferred Taxation _ . . . 

Thereis a liability to taxation of approximated £2004300 which has been deferred as a result of cbSmlng 
capital allowances and industrial bufleflnos allowance on fixed assets in advance ot a charge for depreciation £ 
the accounts, but the' Directors are of the opinion, that no fob* ty is h kely to arise tram a reversal of these timing 
differences in the foreseeable future and. consequently, no provision has been made. Asa result of the nee 
stock relief provisions, no deferred taxation liability arises to connection with stock relief claimed up to 3 1st 
October; 1081. . .. 

(b) Depredation 

Depredation ts calculated k> write off the cost of all assets by equal annual instalments owrftwr 
estimated useful lives atlhetottowing rafesperannum; 

ImpiOTBmehisto Long Leasehold ^operty 2 per cent. 

Plant and Equipment " 10 percent 

. . Motor Vehicles _ 20 percent 

. Rxturesand fittings .. _ 10 per cant 

rt vril be fee Company^poScyto d ep re date the long leasehold property at the rate of 2 percent pef 
annum, but as the purchase of this property had not been completed on 31 st October; 1981, no depreciation 
has been provided. 

(jo) Stock and Work in Progress- 

stock of male nals is vafuedst the lower of cost and net reafisable value. Vfark fn progress Is valued at tta 
direct cost of materials, labour and attributable overheads less any foreseeable losses except tor contracts which 
are substantially complete and to which an estimate ot profit has been added. Payments receivabfo cm account 
of workdone are deducted from the valuearrfved at onfee above basis; 

SL Profit said Loss Accounts 

Asumrna^ofthaptofitaitotossaccountsrtFlatonoffforfeB^yearatmmbnthsendedBI^Octabec 

j 9 ol is set out below: 

„ ' .. 16morifcs 6 months 

VfearendW ended ended 

■ • .V&r ended 30th Aprs 31stQctaber 

Nate 1977 . 197S 1979 1980 1981 1981 

£ £ £ £ £ £ 


Turnover 

Cost o! Sales 

S 

501,534 
442,352 ■ 

765,555 

704504 

617,412 

594,080 

921,891 

807,679 

1,025,371 

890,177 

612327 

525,339 

Operating Profit 

Other ms 


58,582 . 

61,051 

2.793 

23,332 

3^78 

114,212 

13,308 

135,194 

23.633 

88,988 

5,257 

Profit before Taxation 

Taxation 

00 

58,582- 

27,783 

63,844 
39,992 • 

27,310 

17,604 

127,520 

32,797 

158,827 

48538 

92,245 

17350 

Profit alterTaxation 

Dividends 

Ov) 

30,799 

23552 

9.706 

94,723 

100,000 

110,589 

120,000 

74355 

Amount transferred to or from 
Reserves 

£30,799 

£23,852 

£9,706 

(£5,277) 

(£9,411) 

£74395 


Holes tofts Profit and Loss A cco u nt 

0). ' Turnover 


Net Trading PnM 
Investment Income 
Management Expenses 

Pro&BeforaTax 

Taxation 


Nates 

00 

03) 


Profit AfterTax 
Exchange Adjustmentsand 
Extraordinary-hems Qv) 
Dividends 

ProEt/CLoss] for Period 


197S 

£ 

262,439 
9,732 
Cl 7,731) 

254.490 

(23,545] 

230,945 

(31 ,633] 
(20,337) 


Year ended 31st December, 
1977 1978 1979 

£ £ 


£ 

31,591 

(18,337) 

13,254 

(12,828) 


iSmcnths 

Vter&idedMhAprB SfetOcS? 


31,104 36,326 

(9,379) (15,649) 


21,725 
(10,940) 

426 10,785 


(10,4913 

(8,592] 


(8,592] 


20,677 

(20.371) 

306 

(4574] 

(8.592] 


32,253 47,941 

(14,278) (13,781) 

17,975 34,1 BO 

(8.596) (17,783) 


9,379. 

(5,592) 


16,377 


£173,975 (SI 8,657) £2,193 (512,860) £787 £16,377 


£ Summary of Balance Sheet 

. . ..The icikrMng isaaimmgry of feg audited consoBdated balance sheet of the Company and its that 
s uraic ianes as at 31st October; 1981. 


Investments a! Ms rirat Vtilue 

A_C_T. Recoverable 

Bank Balances and Deports 

Notes 

Off) 

2 

252350 

2370 

326,971 

Creditors and Tax Payable 

■00 

581,791 

136,295 

NetAssets 

Cv) 

5445,496 

flepresenferfb/r 

operceni. CumuiaifvsP/eferenceShafssofJ&l 

Ordinary Shares ot 51 


21,750 

195,750 

Share Caoifai 

General Reserve 


217,500 

227,996 



£445,496 


goods supplied as a principal and tar services provided. 

( 3 ) Castof Sales includes: - . 

- • 1G months 

Year ended ended 

8thJanuary ■ 30th Aohl 

7 £ ,S7 | 197 f ' 1980 1881' 1981 

Dlrectonf.emdUmsnts 19.905 23,860 2207a -mroI 

Depredation 2^077 1*594 I’nvq 36,300 20£62 

Auditors' rwnunBratfon ■ T f ioo " 2 H 0 JioOO 2 000 

Leasing and hlrecharges 5,883 13,437 7824 19 2,080 

Interest payable . ^OSS ,d, 77a 7 *871 ^SSO *§87 

■ CD Taxation _ ■ . 

Corporation tax fabteehava been calculated on 
group relief ts available. 

Ov) Dividends 

3a Balnea Sinat 

.• The balance sheet of Raton oft at 31 st Octobet; 1931 Is SBt out befatv: 

FIXED ASSETS Not ^ £ 

CURRENT ASSETS w 

Group Companies nn 

Stock and WbrX in Progress 99.358 

Debtors and Prepayments uw ifs ? 781 

Bank Balances and Cash • 169,160 

469 


5 

686553 


-3. Notsc to Financial Information 

(D Accounting Policies 

CD) Investment Income 

depositsinB^£S. fram 010 Qmup ’ s ‘ W8stmerts a™* deposits In fee United Kingdom and from 
GQ Taxation 

£ 

1,919 
14,796 

£17,783 

. Provision of £104.810 has been made for a disputed Kabffify fa Bangladesh lax on capital gains and 


CURRENT LIABILITIES 

Creditors and Accruals . 
Hire Purchase Contract 
Taxation 

Bank Overdraft (secured) 


NET CmmEttf LIABILITIES / 

LONGTFR1TLOAN 
NET ASSETS '/ 

SHARE CAPITAL. 

RESERVES- REUUMBMOnTSv 
3HAREI«M«eRS>F»IDS 7 
Notasto the Balance Sheet' 

oa- 


Ov] 


tv) 


431,768 

578.084 
3,939 
3,300 
_ 5,980 

591,203 


T^onfrantedifNestmentincama 

Overseas tax 
Corporation Tax 



migra be made; on the. bass of present 
™ lormef aracl0,s °f fee Compary estimate that any such additional liability should not exceed 


Long Leasebofo Property •’ 

Plant and Equipment .. 

Motor vehicles ■ ' ‘ 7 " v 

Faturesand Fittings. •. 

DO Group Comwwffis 

Tne amount due by 

Trusamountistoberepajdool8tM^4lS82. 

(80 ' spek and Work InPragmss r 
Stock of Materials 
WbrkiaProgress, J. 


• ^ OepaadaSon 
545X100 - - £ 

4*299 
• 715 


Cl 59,435) 

S27.S18 

235,000 

£292518 

50,000 

242318 

£292,518 

Book 


84,749 
- 11.728 
8X276 


£ 

SASflOO 

61,756 

«5£07 

7,429 

7561 



. .r 'V . MW HMIWRW1H lieu 

amountEd to approximately £36,000 al3lst October; 1981. 

Qv) Exchange Adjustmentsand Extraordinary hems 

These have arisen from the writeoff of valueless overseas trwesftnsrrts. the profit or loss on fee 
tran slatton erf net cu-rrent assets and post cessation tea trading ^ ^ or ras on me 

(V) Remittances ■ 


&) ;. The bankoventaffiseecurad fyattehart^ates«d bypfeonoffcwwl 
(v) - Long Tbrm Loan 


(1 ,121,103? 

£182.781 



’JjwrcenLpsranmim. 







E:r :.'k. 




■ - r,.| ^ 


■■ 


. U r^, 


e« 


"X 


V 


./ 


1 



• Financial Times Monday March 8 1982 

APPOINTMENTS 


25 



at BBI 


FoUqwujs the appointment of 
Mr Brian- Pearse as a general 
manager and chief executive 
Officer of BARCLAYS BANK 
INTERNATIONAL, New York 
. (see Appointments column. 
March 5), Mr Richard Carden, 
-who -currently -holds the New 
York post, will return to Lon- 
don. On January 1 to become a 
genera] manager of BBL Mr 
Michael Morris, at present 
seconded to BBI, will succeed Mr 
JPears.e as a genera] manager of 
Barclays Bank on October l. 

* 

Mr I>. C. Elcy has been- 
appointed to the Board of P. S. 
REFSON AND CO, wholly-owned 
subsidiary of JP. S. RefSdn aid 
Co. (Holdings). 

■* 

- SCANDINAVIAN BANK 
GROUP has appointed Mr Karl. 
Johan Sallncr to be head. of its 
new Forest industry department. 
Mr Sa/lner Joins Scandinavian 
Bank from Skopbank where he 
was UK representative since 
1979. 

★ 

Mr John Glanvfll Smith has 
been appointed chairman and 
chief executive of CLARKSON 
PUCKLE MARINE HOLDINGS 
and a director of CLARKSON 
PUCKLE GROUP. 

Mr David Serr has been ap- 
pointed a director of BROWN 
& .TACKSON LTD. He win 
continue as managing director of 
Honeysuckle Fashions, a member 
of the Brown £ Jackson Group. 


Mr peter Palmer has also been 
appointed a director of Brown & 
Jackson Ltd. 

* 

Mr Edgar (Ted) Brown and 
Mr Graham Clark have been ap- 
pointed directors of VINE 
PRODUCES. Mr Brown has 
beeome Group services director 
and Mr Clark finance director. 

★ . , 

-Mr L. J. Holland has been ap- 
pointed sales director of TAME 
VALLEY ALLOYS and Mr &. 
Gilliver has been appointed man-, 
aging director of WILNECOTE 
CASTINGS. Both companies are 
members of Tom Martin Metals 
Group. . 

■*- • 

Hr J. Y. P. O'Connor and Mr 
R. E. Mobsby have been ap- 
pointed to the board of LYON 
LOHR HOLDINGS apd Mr D. D. 
Barder to the board of LYON DE 
FALBE INTERNATIONAL. 

★ 

AB ELECTRONIC PRODUCTS 
GROUP has appointed Mr 
Francis E. S. Bayes as a non- 
executive director. He is chair- 
man of the Gressweil group, and 
has other business interests in 
the Midlands.- 

TAYLOR INSTRUMENT COM- 
PANY. Rochester, New York, a 
subsidiary of the Sybron Cor- 
poration, has appointed Mr 
Robert G. Robertson as vice- 
president, international business 
development, based in London. 
Mr Richard H_ Rosen bloom is 
appointed vice-president. Euro- 
pean operations and managing 


director of Taylor Instrument, 
Stevenage. He joins Taylor's 
European operations from the 
Sybron Corporation, where he 
was financial executive, opera- 
tions planning and analysis. 

★ 

Mr E, John Webster has been 
appointed ' managing director 
and chief executive of the 
ABMT3X sub-group (formerly 
known as Associated British 
Machine Tool Makers) as part of 
a major reorganisation ' at * 
' director level within the 
-privately-owned /West Midland 
Edward ' Williams Holdings 
Industrial Group. 

★, 

Mr John Halbert has -resigned 
his executive duties and .has 
become president of the ABMTM 
Group and will act as adviser to 
the parent company, Edward 
Williams Holdings on comraer- 
rial development He remains a 
non-executive director of both 
ABMTM (Holdings) and 
ABMTar. ■ Mr Brian Williams, 
.chairman of Edward Williams 
has assumed chair- 
of all ABMTM com- 
and the holdings 
executive, Mr 

has become 


Holdings, 

manship 
panies 
company's chief 
John Standisb, 


deputy chairman. Mr Ken 
Ormson continues as UK sales 
director, machine tools division 
and Mr Horace Morgan as 
commercial director. 

■* 

NATIO NWIDE BUILDING 
SOCIETY has appointed Mr John 
Page a director from April 1. He 
retired recently as executive 
director of the Bank of England. 
He was chief cashier from 1970- 
19S0. He will be joinin'* the 
board of the Agricultural Mort- 
gage Corporation on April 1 


with a view to becoming chair- 
man later this year. 

. * 

Mr Simon Newm an has 
joined the MANUFACTURERS 
LIFE INSURANCE COMPANY 
(MANULIFE) as sales develop- 
ment manager. 

>*■ 

Mr Adrian Bam has best' 
appointed general sales manager 
for ALCAN EXTRUSIONS. 
Banbury. 

+ 

Mr A W. Twistoo Davies has 
been appointed an executive 
director of F. AND C. MANAGE- 
MENT. the. management com- 
pany of the F. and G. Group, 

* 

Captain D. - P, Hopkins has 
been appointed to the board of 
BRITANNIA AIRWAYS as 
fiicrbt operations director. He 
joined' Britannia Airways in 
after serving with both 
BWTA and BEA. and has bees 
chief pilot since December 
7976. Captain B. S. Grieve, deputy 
chief pilot, has been appointed 
chief pilot 

+ 

Mr Vie Law has been 
appointed manaqine director of 
the COMPTON WEBB GROUP’S 
Scottish division, which includes 
Man dark and Son, Moore 
Taggart and Co. and Jeltek 
Weather-guard. Mr Ian Smyth, 
who was previously managing 
director of Jeltek Weatherguard, 
is now a&sfctnnt managing direc- 
tor of the Scottish division. Mr 
Bill Taggart has been appointed 
manaeinr director of J. Compton. 
Sons and Webh. 

+ 

The DISTILLERS COMPANY 
has made ihe following appoint- 
ments from May 1: Mr Michael 


B. Henderson will be chairman 
of John Haig and C&, and Mr 
Janies A. Wolfe Murray will 
succeed him as managing direc- 
tor. Mr Ian Ross, senior export 
director of White Horse Dis- 
tillers will succeed Mr Wolfe 
Murray as managing director or 
the Macdonald Greenlees group, 
★ 

BEATSON CLARK has 
appointed Mr Peter Moran and 
Sir Bernard .Smith as directors. 
Both Mr Moran and Mr Smith 
were formerly departmental 
directors of the company. 

* 

Mr D. S. Hancocks is to be 
appointed BURMAH-CASTROL 
. director, lubricants marketing, 
on April 1. 

Mr Robert A. Cahler has been 
appointed 'managing director or 
INTERNATIONAL HARVESTER 
COMPANY OF GREAT 
BRITAIN. He replaces Mr Roy 
Shephard -who leaves the 
company. Mr Colder, a Canadian, 
was director, sales operations, 
construction equipment based at 
the company's Paris head- 
quarters for Europe, Africa and 
the Middle East. 

■* 

NEWBY AND EYRE INTER- 
NATIONAL has appointed Mr 
Peter Houldsworth as managing 
director. He was formerly 
director in charge of the UK 
export and Middle Bail opera- 
tions. Mr R. E. Sehirrmarher — 

former managing director— has 
left the company. 

★ 

Mr Chris Turner has joined 
TRANSDUCERS (CEL) (a 
Unitech Group company) as 
managing director. Previously 
he was assistant managing direc- 
tor and marketing director or 
Marconi Electronic Devices. 


ABERCOM LIMITED 


(Incorporated in the Republic of South Africa) 


Aimouncement 

Abercom Group Limited (‘ Abercom ’) has entered into long 
tenn agreements with Suid-Airikaanse Nasionaie 
Lewensassuransie Maatskappy (‘ Sanlam ’) together with 
Metropolitan Homes Trust Life Limited, for the sale and 
lease-back of certain industrial properties owned by Abercom 
subsidiary companies in South Africa. - 


The total price received for the properties is approximately 
R22 million. As a result of the agreements, Abercom will 
release substantial funds for investment in expanding its 
existing business,. and for the acquisition of new businesses. 


The immediate uplift on Abercom’s earnings per share will be 
minimal. An increase in Abercom’s tangible net worth per 
share of approximately 51 cents results from the transaction. 
Full details of the transaction will be given to Abercom 
shareholders by means of a circular as soon as possible. 


Johannesburg 
3 March 1982 

3rd Floor, Abercom House, Oxford Park, Sandton 
P.O. Box 7S2454, Sandton 2146 



Page 2. 

«. 


Statement* of Soureo and Application of Funds 

A summary of the source and application ol funds of Pfatonoff for the five years ten months ended 31st 
October, 1 981 is set out below: 

Ybar ended IS months 
8th . ended 
January 30th April 
1977 1978 


1979 


Yearended 30th April 


1980 


1931 


6 months 
ended 3 isr 
Cctcber 
1931 


Source of Funds ' 

Profit before Taxation " 
Adjustment tor items not involving 
the movement oi funds: 


£ 

58.582 


£ 

63,844 


£ 

27.310 


£ 

127,520 


£ 

38,827 


£ 

92.245 


Depreciation ■ 

Prom on safe of fixed 

Assets 

2,077 

1.594 

Cf.010J 

1,079 

. 1^57 3.485 

5,701 

Total generated from business 
operations 

Hire Purchase raised 

Sate of Fixed Assets 

Long Term Loan 

60,659 

4,690 

' 64,428 

2,663 

28,389 

129^77 42312 

9,464 - 

97,946 

235.000 


65.349 

67,091 

28.339 

13B.841 43.312 

332.946 

Application of Funds 

Investment m Fixed Assets 

Hire Purchase repaid 

Dividends pant 

10,233 

3,362 

1,681 

11,728 63.029 

788 3,1 54 

- 100.000 

616 222 
1,583 


. 10,233 

3.362 

.1,681 

12,516 166. 183 

617,805 


£55,116 

£63.729 

£26.708 

£128,325 (£123.871) (£284.859) 

Changes In Working Capital 

Increase (Decrease) in:’ ' 

Group Companies 

Stock and Work in Progress 

Debtors and Prepayments 

Decrease (Increase) n>: 

Creditors and Accruals 

Movement in Net Liquid Funds: 

Bank and Cash. 

(17,640) 

11,179 

42,640 

C?.1723 

21,115 

103.714 

(11.780) 

(23,115) 

(3,099) 

(1.991) 

43,060 

(4,875) 

11,250 

4.380 

(27.107) 

98,877 (67,795) 
72,442 74,631 

(11,844) 27,454 

(65,446) (55.484) 

34.296 (102,677) 

6,154 

(89.852) 

72,411 

(367.556) 

93.984 

• 

£35,116 

£63,729 

£26,708 

£126,325 (£123,871) (£284.859) 

5, Current Coot BalancoSHeot 

The currant cost balance sheer of Pfatonoff at 3tst October, 1981 Is set out below: 

Notes £ . 

FIXED ASSETS . . . 00 

£ 

695,536 

CURRENT ASSETS 

-Stock 1 - ' ' 

Monetary working capital 

; : ... 




47,053 

24,900 

Total Working Cacrtal 

Olher curreniassets less liabilities 
' Taxation 




(228,092) 

(3.200) 

71,953 

(231.292) 






(159.339) 

• ' ’ 





536,197 

LONG TERM LOAN 





235.000 

NET ASSETS 





£301,197 

SHARE CAPITAL' 

RESERVES 



(HQ 


50,000 

251,197 

SHAREHOLDERS' FUNDS ^ 





£301,197 

The current cost profit and loss accounts ot Plalonoff for the year ended 30th April, 1981 and ihe sx 
ninths ended 3 1st October, 1981 are set oul below. . year 6 months- 

ended ■ ended 

30th April 31st October 
1981 198 1 

TURNOVER 



AfOflSS 

£ 

1.025,371 

£ 

612,327 

PROFIT BEFORE INTEREST AND TAXATION AS IN 
HISTORICAL COST ACCOUNTS 

Current cost operating adiustments 

Ov) 

16,771 

1.224 

87,575 

3,899 

CURRENT COST OPERATING PROFIT 

Interest recewabe less payable 



15.547 

22.056 

83,676 

4,670 

CURRENT COST PROFIT BEFORE TAXATION 


37.603 

88,346 

3.200 

CURRENT COST PROFIT^ TRANSFERRED TO RESERVES 

£37.803 

£85,146 


7m 

n> 

ta) 


NOIM DO WST»m 
Accounting Policies 

nS^Si^SS^SSSSfSbSSSS been preps, «i in Bccordance »9h satama.1 of Slandatf 
P^icSNumber 16. The current cost system, while not a system of accountma lor general 
inflation. afiows tor price changes speoficlo the business when reporUng-asseisemptoyed andprcALs thereon. 

■ -n r*w=.iinn rwnrit is tho sumlus before interest and taxation arising from the oralnar 


JOIl, dllUWS IU* (41IVOUI ; . : . . ,, „ • 

' -mo rurreni cost ooeralinq oroTit is the surplus before interest and taxahon arteing from the ordinary 
aiMiuiiirZnf the busi^K Sthe period ft is determined after allowing tor the rapact of price changes on the 
f>j^s ne^^ to mavrtato thepiodudS/e assets ot the business but does not take into account the way in which 
these assets are financed. ; 


assets are ii nanceo. t . ... 

In the balance sheet fixed assets and stock are included at their current cost (net of depredation on 
fixed assets). 

Thag^Mair rent oostoMixed assets has been derived as follows: 

tmornvements to tonq leasehold property, plant and equip merit, fixtures andfttinBS and motor veluctes 
have beenrostatpd using appropriate government indices applied to the historical coats. ^ 

Asset lives have been reviewed on the introduction erf currant cost accounting and the existing asset lives 
were found to be adequate. 


i U nd to be adequate. 

between the depreciation charge in the historical cost and current cost accounts. 

.4 nl 4ha Irwin louCohrilrl ntflftfl 


5 ll l|T0 UoPTownilui I Ll Wiy® ^ i 

”hi«^nr£>HaHnn has b*an charaed in respect of the long leasehotdproperty in either the historical cost 
2S5 SSwSsnn me basis that the purchase was not completed unlit alter the end of the period. FOr 
or current cost accosts S'. L ^ S conside ration due has bean eliminated I ram net borrowing m computing 

inieiesL 

CO 


L 

KSKocfc. work in progress, and trade debtors less trade creditors. 

This induces stock, wncm prag . QnMt ^ adjustments are made to the ■ 

In order basu^one onstockand the olher on monetary working capital. 

SnSSSSS 2l£n ® nSSSlSIf prn indices wWch reiiea dossl, n* disnges m eput pnees 


The adiusimenfs 

experienced by the company. _ 
(d) Ofheraccounfrngpotfaes 


LAWyt uumnwv* 

historical cost accounts. 

GQ Fixed Ass* ts 


Plant and equijjment 
Rxtures and fittings 
- Motor vehicles 


C«0 


Rmhw 




Gross 


Net 

Current 

Accumulated 

current 

cost 

depiecsation 

cost 

£ 

£ 

£ 

545,000 


545.000 

63,314 

• 633 

62.681 

133,423 

62,801 

70,622 

10.206 

2.475 

7,731 

' 15,000 

5.498 

9,502 

£766,943 

£71,407 

£695,526 


Current 



cost 

Retained 

Total 

£ 

(Notoftg 

profits 

£ 

159.441 

7.192 

152,249 

- 85,146 

— 

85,146 

6,610 

6,610 

— 


£251.197 


£13.802 


£237,395 


M S^i^^SSS^taSbS?^inar^ a ia»c U r«nlcosto 0 e ra iinsi*^tlbrlh e peri O d ;E 

Wwfe'ftgCapiiaf .... 415 

S^a^Sorhinocapftal 


2^67 


"fixed Assets 
Depredation 


2.982 

917 


£3,899 


V " Sifc” zk\.~ :-.r 




(v) Analysis of Current Cost Reserve 

Balance at Isr May, 1981 

Chanoe in unr&ahs&J and revaluation surpluses: 

ImprcA/emenis to Long Leasehold Property 

Plant and Equioment 

Rvtures and Fillings 

Motor Vehicles 

Slock 


7,192 


614 

1,340 

(73) 

757 

73 


Current cost operating adjustments (Note (iv)} 


2,711 

3.899 


f. 13.802 


The current cost reserve incorporates adjustments made since the adoption' ot current cost accounting 
on 1st May. 1980. 

8. Vtte are of Ihe opinion that the financial slatements within this Report qive a irue and fair view of the stale 
oi the attairs ot Ptaionott at 31st October, i9Bl and ot the results and source and application ot funds lor the 
periods ended on that date. In addition the abridged supplementary current cost accounts have been properly 
prepared in accordance with the policies and methods described lb give the information required by Statement 
ot Standard Accounting Practice Number 1 6. ^sur faithfully. 

CREASE Y. SON & WICKENDEN, 
Chartered Ai.raimtonfF. 


PRO FORMA STATEMENT OF THE NET TANGIBLE ASSETS OF THE ENLARGED GROUP 

The loUowmg statement is based on the audited consolidated balance sheet of Ihe Company and itr. then 
subsidiaries as at 3ist October, 1981 and the audited balance sheet ol Piatonoll as at that dale. 

£ 

Fixed Assets 

Net Assets blocked in Bangladesh 
Current Assets 

Stock and Wotk in Progress 
Debtors and Prepayments 
Bank Balances and Cash 


£ 

np.r5.9S3 

193,154 


162.781 

175,896 

353 


339.030 


Current Liabilities 

Hire Purchase Contract 
Creditors arid Accruals 
Taxation 


3,939 

238,984 

3.200 


246,123 


Nat Currant Assets 
Long Term Loan 


92,907 


973.014 

225,000 


Deduct costs of acquisition and re-feting 

Net Tangible Assets 


738,014 

99,000 


£638,414 


sheets: 


T he above pro forma statement reflects the following adjustments to The above mentioned balance 


0) 


Oi) 


The sate of the Ested securities at the sum of £252,250, being the market value at 31st October, 
193 1 , applied in reduciion of creditors. 

The separate statement of btockad net assets in Bangladesh referred to In Note 3 (v) to "financial 
Information Relating to the Company" set out above. 

The settlement of £fwgrai/p company indebtedness to PlaionolL 

GENERAL INFORMATION 

1. Dimeters’ and Otfiwr Interests ... , . „ , . ^ 

(a) At 1 0th psbruaot 1932 the interests of Ihe then Directors in Ihe Company s share capital were as 


(Hi) 


lollows: 


P.N.R. Harding-Hdgar 
J.D.M. Watson 


G. R. Simpson 
*Sharesof£,1 each: 


Preference 
* Ordinary 
Preference 
' Ordinary 
'Ordinary 


Beneficial and 
Family Interest 
1,350 
• 660 
100 
4.500 
250 


As Joint Trustees 
3.1.75 
27.1 7G 
3,125 
27.1 7C 


(b) At 10th February, 19B2 there were the following shareholdings in excess of 5 per cent of the issued 


share capital: 


*Ordinary 

12.926 


16,855 


Preference 

3.125 

1,350 


15,535 

15.000 

15,535 


3,000 

4,450 

1,440 


2,000 


.Mrs. J.M.F. Fraser 
Mrs. G. Harding- Edgar 
Mrs. D. M. Harris 

The Marriage Corrtracf Trustees of 
Mr. and Mrs. D. A. C. Keatings 
C. G. Manktelovv 
Mrs. B. V. Nelson 

l. M. Russell . „ t . _ 

The Test a mentary Trustees ofthe fate Sir A A. Russell 
J.S. Russell 
Mrs. M. Russell 
*g ri3res q| J 1 ] 

Fbftowinq completion of the Acquisition Agreement ihere will be no shareholdings in excess of 5 per 
cent, of the issued Ordinary share capital other than the holding ol Taddale which as a result oi the placing 
arrangements menlioned below will consist of 777,71 5 Ordinary shares of 25p each. 

(c) Mr. M.R. Carton is beneficially interested in 40.2 per cent, of the Ordinary capital of Taddale. 

Under the placing arrangements referred to In paragraph 3 below, Mr. M. R. Carlton and Mr. A. R. 
Gate win be purchasing 20,000 and 30,000 Ordinary Shares of 25p each respectively in the 
Company at the price therein mentioned. 

Mr. D. Walsh is a partner of Brecher & Co. who will be receiving a fee in connection with the 
acquisition by Pfatonoff of the leasehold property at Cambridge. 

Save as disclosed above, no Director or proposed Director has or has h3d any interest in any assets 
which have been within Ihe last two years acquired or disposed of by or leased to the Company or 
any ol its subsidiaries. Except tor the service agreements menlioned below, there are no contracts 
or agreements in which a Director is materially interested and which are matenatly significant in 
relation io the businesses of Ihe Company and its subsidiaries taken as a whole. 


GO 


(e) 


CD 


2> Acquisition Agreement 

The Acquisition Agreement was entered into on 8th February. 1982 between Taddale, the Company and 
the then Directors ol the Company and provides tor iha acquisition by the Company ot me whole of the bsued 
share capnai ot Plalonotf wnh alt rights attaching thereto for the sum ol £450.000 to be satisfied by the issue to 
Taddale and its nominee shareholders in Pfatonoff ol a total oM ,161 ,288 Ordinary Shares ot 25p each in the 
Company crediied as fully paid up and ranking pari passu in afl respecls with ilie existing Ordinary Snares 
PWwision Is made in fhe Acquisition Agreement tor common torm warranties and indemnities by Taddale in 
natation to F>latonotf, including indemnities in respect ot any laxation liabrtity tailing on PlaionolL 


3. 


Undenfn Agreement dated 3rd March, 1 982.T C. Coombs & Co. and Sternberg, Thomas Clarke & Co. 
have jointly and seroraliy agreed, subject to ihe Acquisition Agreement becoming unconditional in aU respects, 
to purchase or procure the purchase trom Taddale at the price of 3B.75p per share ol 383.573 Ordinary Shares 
ot 25p each in the Company telling to be issued io Taddale as pan ol the consideration under the Acquisnon 
Agreement The broker^ commission, stamp duty and other expenses, including vat, in connection with the 
Agreement are payable by Taddale. No part ot ihe proceeds of this placing would accrue to the Company 


.fh^Cwroany will, upon completion ol the acquisition of Pfatonoff, have the tallowing subsidiaries, aH of 
which being wholly-owned: and Country 

ol Incorporation 


Name 


Issued Share Capital 


Plalonoff 


Sonarapa . . . 
Investments Untiled 


10th October. 
1957: England 


50,500 Ordinary Shares 
of Cl bach 


9th Julx 1969: Scotland 


TheDhamaTea 
Company P.LC. 


10th September, 18M: 
Scotland 


50 Ordinary Shares of £1 each ' 
[ 21,750 Preference Shares 
I ol El each and 
1 195.750 Deferred Shares 
otEleacti. 


5, Articles of Association 

At the Extraordinary General Meeting on 5th March, 1982, the Company adopted new Articles of 
Association which contain, infer sfa, provisions to the following effect- 

^ Thehr^fm of ihe Preference Shares are entitled out of ihe ner profits to a fixed cumulative preferential 
dividend at the rate of 5 per cent, per annum, but have no further right to participate in profits. On a return of 
capital the holders of the Preference Shares have the prior right to receive as arrears ol the tnced cumulative 
preferential dividend, whether earned or declared or not. and the amount paid up on such shares (or a pro- 
portionate cart thereof on a partial return of capnah and the surplus assets belong to the holders ol the Ordinary 
Shares. The riqhts attaching to the Preference Shares are not deemed io be altered by the creation or issue of 
further shares' ranking psri passu with, but not in priority to. the Preference Shares. Such rights arc deemed to 
be varied oy, inter aba, any alteration In the Company's objects or any increase in the Directors* borrowing 
Powers. 

^ Onasftow of hands every member present fn person shaff have one vote and on a pofl every member 

S in person or tv proxy shall have two votes for every Preference Share held by him and one volefor every 
yShareheldbynim. 

fc} Variation o! Class Bights , . . 

The richls attached to any class of shares may. whether or not the Company is bang wound up. be 
varied orabrogated with Ihe consent in writing ot the holders of three-fourths of the issued shares of ihe class, or 
■with the sanecon of an Extraordinary Resolution passadat a separate meeting of the holders ol the shares of the 
class. To gwr such separate meeting all the orovrsons of the Articles as to general meetings cJ the Company 
snail, mu/s /.' s mutandis ; apply, except that the necessary quorum shall be-two persons at least holding or repre- 
senting by proxy one-tnird in nominal amount of the issued shares ot the class (but so that it at any adjourned 
meeting of such holders a quorum as above defined is not present, those holders who are present shall be a 
quorum), that any holder of shares of the cfass present In person or by proxy may demand a poC and Ihat me 
. holders ot shaies ol me class shall, on a pod. have one vote in respect of every share of the class held by them 
respectway.. 


(d) Directors 


tit 


cun 


No share qualification Is required tor Directors. 

The Directors shall be entitled to such few. not exrefiling in anyone rase £2.000 per annum as tho 
Directors niayderermine. 

A Director shall not vole (or be counted in a qunnim) in respect of any contract or arrangement in 
whi.th lie is miercr-ted. but this protuLuiinn rJnil nut apply in u ■gard to: 


ft) 


the giving of any security or indemnity to tin* Director in respect of any money tent r.r 
obtig jiions under tahen by him at me n-quest ut or tor Hit' benefit of mo Company or any ot 

SliC.'jJutif 


ft? 


ft) 


ihe giving cl any security or indemnity )o a third party in respect of a debt nr obligation pf rhe 
> ct iis sutatdanfw. lor which the L'ii^l'Icu lum-^lt liar, assumed rispcrrathliry; 


ft) 


ft) 


Company cr any ct i 

the underwriting of any c hares w debentures of ihe Company or any of its subradorios by tho 
Director; 

any contract or arrangement with any other company in which the Director fc interested naan 
officer or shareholder or Gtltf-i nre provided uni lie i-: not inlere- ted in t per cent, or more ot 
the equity share capital o! such company or ol the voting nglttsav.lilaMu to members ol the 
relevant company; 

the adoption. moeCficatinn or operation ol a superannuation fund or retirement henefas 
scheme under wtxcn the Director may br-rui-fit and imtwli li.n bn.>n approved b/ the Inland 
Revenue for ia-olion purperes. 

Tha foregoing prohibition may be suspended oi relaxed by ihe Company in general meeting. 

ft'] Where proposals are under consideration concerning ihe appointment (including fixing or varying 
the terms thereotl ot tv/o or more Directors to any oltice under the Company or any company in which the 
Conipany^mteresred, such proposals may be considered inreLiliun to each Director -^ur.ilflv ;md m such case 
each ol the Directorr.conrernea (it not debarred by the proviso to - ut> paiaqi .iph (ml /•/* above l may vote and be 
counted in me quorum in relation to each resolution e-srepi mat nmcei nir»j Ins own .ipp.Niunii.-iil. 

(e) BorroninoFowers , „ , 

The Directors chaB restrict the borrewings ot the Company and nww all voting and other powers or 
control exercisable by Ihe Company in relation to subsidiaries so as to secure Hat ihflanqrrti.no amount lor the 
rime being undischarged of amounts borrowed by the Company and/or itssiib-viuin’i.texctoding mira-grouo 
borrowings) chat/ nor ar anj' lime 1 , without me consent ot the Company m general meeting, exceed j sum equal 
to lour times the aggregate otlhe paid up share rapiral ol the Company and the ri.ipn.il and iwcmue reserves ot 
Ihe Companv' and (so tar as is attributable to the Company! ol its subrjdiui ies, alt as shown in a consolidation of 
the latest audited balance sheet s ol the Com party and its suteidia i ier. but alter: 

0) making adjustments in respect of any variation in the share capital or cipibl reserves since f ho 
• balance sheet date and sothatfor Ihia purpose an issue ol shares ol live Company fi* cash which has 
been underwrinen shall in certain specilied Circumstances be deemed to In wo been made and arty 
amount (including premium) of me subscription monies shall be deemed to have Leon paid up when 
theshs res were underwritten; 

(if) deducting any debit balance on profit and kres account and any amount attributable to goodwill; 

OS) excluding amounts set asids tor laxgi ion; 

(jv) deducting any dividend out ol profits earned prior to the balance sheet date and, except] rooter as pro- 
vided tor in The balance sheet, declared , recommended or paid since that date; and 
(V) making such other adjustments as I ha Auditors conaderappropriate. 

The expression "amounts borrowed" is defined so as to inrtude the principal amount of any debenlure, Ihe 
amount of acceptance credits (olher than in relation to the sale of goods in ttw ordinal y course of business) 
and guarantees, and so as to exclude. intf*aKa, borrowings el fected io repay existing bon owing sand so utilised 
within a period of three months and. for ejperiod of twenty-four months from Ihe dale Of its becoming a sub- 
sidiary, amounts borrowed by a subsidiary at such date. 

S ) Section 1 85 of the Companies Act 1 948 relating to the retirement of Directors attaining Ute age of 70 years 
□es ncl apply to the Company. 

6. Olh*r Information \ 

(a) The Company was informed In October 1 9E0 of the Bangladesh lax auihorilietf intention Io carryout 
an investigation into tfie alleged illegality of fhe sale of the lea plantations by Ihe Dltamai Tea Company RLC. on 
the bass that the sate price was substantially higher than that disclosed to Ihe authoniies. No details have so far 
been submitted to the Company of thi3aUegaiion . which in the view of the former Directors ol the Company is quite 
unfounded. In addition, appeal proceedings by Ihe Company are omstanding in respect ot the disputed Uabiblies 
io Bangladesh law-resulting from the sate of the tea plantations and Bangladesh income tax. The provision of 
£135,248 made in the audited accounts ot the Company tor these ruLxbuen may have to be increased by an 
estimated £l 0,000 in ihe light ol a report recently received by tlie Company lint additional Bangladesh tax 
assessments might be made; subject to any such increase the former Directors believe the tax provision to be 
adequate. Save as aforesaid, top Diteciors are not aware ot any litigation or claims ol material importance pending 
or threatened againsi the Company or any oi its subsidiaries. 

(b) The foHowing contracts have been entered into (otherwise than in the ordinary course of business) 
wi'hin the two years preceding the date ol this document and are or maybe mateual: 

(i] Service Agreement dated 1st September, 1981 between Pfaionoll and Mr.T PlalonofT underwhich 
Mr. Piatonoll was employed as an executive director lor a period ot three years trom 1 st May, 1981 
at a salary of £1 5.000 per annum (reviewable annually] plusa commission at the rale of 3.75 percent, 
ol the net trading profits ol Piatonoll in each tirunaai year; 

(fi) Service Agreement dated 1st September, 1981 between Pfatonoff and Mr. J. A. Harris under which 
Mr. Harris was employed 3 c .an executive di reel or for a period ol three years from 1st May, 1981 at a 
salary of £i 2.41 6 per annum (revtewable annually) plus a commission at the rate ot 2.5 per cenL ot 
the nei trading prafiis ol Piatonoll in each financial year, 

CUT) Agreement dated 29th October. 1981 bei ween Taddale Prapnrtfes Limited (a member of the Taddale 
qioup] and Piatonoll under which Piatonoll purcliar/vi the leraeiioid factory and office premises 
at Nultietd Road, Cambndge.for the sum ol {*.530.000; 

(iv) Lease dated 1st February, 19B2 between the City erf Cambridge and Pfatonolf. being tho tease in 
respect ol Piatonoll s factory and oftice premises on the terms referred to above, 

£v) Sub-tease dated 1st February. 1982 between Piatonofl and Taddate Properties Limited, being the 
sub- 1 ease ol part ot the otliee accommodation in Piatonoll s premises on the terms referred to above; 
(vi) Legal charge dated 1 st February, 1 982 in favour of Barclays Bank Limited, wherety Piatonofl charged 
its Cambridge premises to secure its babilrfies to that Bank ; 

(vii) Loan Agraemenldaied 1st February, 1982 between Pfatonoff.' Taddale. Taddafo Holdings Limited and 
Industrial and Commercial Finance Corporation Limited ('ICFC'T governing a loan from ICFC to 
Pfatonoff ol £277.500 repavabte tiy 19 m-rfalments over the period io Decemoer 1 990 and carrying 
interest at the rale oil 7.5 per rent, per annum ; 


CviuJ Mori qaqa dated ixi February. 1932 under which Pfatonoff charaed ilsCambridge premises towcure 
the above Joan from JCFC; 


(lx) IheAcquiRiiionAqreemeni. 

(c) On iithNovemlier. 1931 Pfatonoff issupd Ordinary Shares of a nominal amount ol £500 credrted as 
fully paid up by way ol capitalisation ol rerervw. Save as atorewid and except as mentioned herein, no share 
or loan capital ol ihe Company or any of its r aibsidi:irieE tun within Ihe two years preceding the dale ol (hrs docu- 
ment been issued, whether tor ca-rfi or for j itonsideration olher than cash, nor is any such capital proposed to 
be issued. No share or loan captial ol ltv» Company or any ot its subsidiaries is under option or agreed, con- 
ditionally or unconditionally, to be pul under option No commissions, discounts, brokerages or other special 
terror luve been granted by the Company wrfhin the atove two year period in connection with the issue or sale 
oi any share or loan caput al of the Company or any ol iter-uP'-adianes. 

• (d) 'No material issue of shares in the Company (other than to f.hareholdpni pro ra fa to existing holdings) 
will be made wiihm one year irom the date of re-fisting ol lire Company's Ordinary share capital except with the 
prior approval ol the Company in general meeting. 

(e) There ha«; been no material change in the financial position of the Company and ilfi subsidiaries since 
31st October, 1931. 

(f) Save for the compensation payment ol £15.000 to the former Directors, there is no agreement, 
arrangement or undert-landing exiting between Taddale or any person acting in concert with it and any 
Director or recent Director, or any shareholder or iec.eni shareholder, ol the Company having any connection wilt) 
or dependence upon tfw acqmsnan cn Piatonoll. 

(g) Subject to the placing arrangements menlioned herein, there is no agreement, arraneement or 
undeir.iandinq bet wee n Tadilale or any ol itr. subsid lartes and any third party tor the t ransler to ihanhird oarty of 
am 1 of the consideration shares to L>t» issued purcuani io the Acquisition Agreement, but Taddale reserves the 
right io it onrJer any ol such shares to another member ol its group. 

[hi Willi the exception oi Mr. Piatonoll and Mr. Harris, none of the Directors has a service agreement 
.with any member ol the Enlarged Group and nosur.h agteenien! ir. proposed. 

(0 The aggregate emoluments of ihe previous Directors of the Company for Ihe year ended 
3lsi December. ihWJ were ti.GOO. It is estinraled Hut the aggregate emoluments ol the proposed Directors 
(excluding com m ir-sion in ihe cases of Mr Piatonoll and Mr. Hams j m a full year will be £35 .4 1 6. 

(j) The e/pensei relating to the acquiaton ol Pfaionoll and the re-fcting of the Ordinary share capital of 
the Company are estimated to amount to £99,000 (exclusive erf VAT) and are payable by the Company unless 
such re-feting is not granted in which event ihe expenses will be payable by Taddale. 

00 Creasey, Son & Wickenden have given and have nor withdrawn their written consent to the Inclusion 
of their Accountants' Report in this document in ihe torm and context in which it appears. 

0) A. J. Hines C> Co. have given and have not withdrawn iheir written consent to the reference in tltis 
document to tfwir valuation m fhe form and context in which ft appears. 

Cm) Creasey, Son & Wickenden and T. C. Coombs & Co. and Sternberg. Thomas Clarke a Co. have given 
and have not withdrawn iheir written concents to the inclusion m this document of their respective lenersin regard 
to the profit forecast tor Ihf Company and its subsidiaries in the form and context in which they appear 

7 . Documents available for inspection 

Copies of tlie following documents will be available for inspection at the offices ol.Durrant pfesse 
73 Cheapside, London E C?v SER, during itsuo) buancsis hours on any weekday (other than Saturdays and 
public hobdays] until ?.2nd March. 1982: 

(i) the Membrandum and Articles of Association of the Company: . 

CO the audited Accounts of the Company for fhe two years ended 31st December, igao and for tha 
10 month:, ended 3ist October, i9Bt; 

(50 Ihe audited Accounts of Pfatonoff for the rwn yoars ended 30th April. 1 981 and for the six months 
ended 3isi October 195); 


ft)- the Valuation Report ol A. J.+finos & Co. ; 

(vi) the written consents of Creasey. Son & Wickenden, A. J. Hines & Co. and T. C. Coombs & Ca and 
Siefftbero.Thomas Clarke a Co.reterredtoabove: . 

(v5) fhe maleriaJ confracis listed in paragraph 6(bj above, 


DATED 8th March, 1 982. 




f «*- 



’ i” -.-•*** 


■: v 7..:- yS r* i'./Mf 




Financial Times 2to&jr>Ma^ ' - w ‘ 


CURRENCIES; MONEY and GOLD 


RECENT ISSUES 


r 


MONEY MARKETS 


BY JONAS CROSLAND RECENT ISSUES 


The still before the storm 


Interest rates continued to 
fall in London last week ahead 
of tomorrow's Budget The 
market’s typ tally bullish atti- 
tude at such a time may have 
bceo given a guiding hand on 
Tuesday with the Bank of Eng- 
land locking in the discount 
houses at fixed rates through 
repurchase agreements rather 
than tempting outright sales by 
lowering its dealing rates. By 
acting in such a way. the 
authorities succeeded in holding 
nff any cut in clearing banks’ 
base rates probably until tomor- 
row’s Budget. Not only were 
some of test week’s repurchase 
agreements a slightly cheaper 
way of raising cash as against 
outright hill purchases by the 
Bank of England (184 oer cent 
representing a true cost against 
a slightly greater figure based 
on 13£ per cent band 1 dealing 


rate) but the houses were Quite 
happy to unload around £l$bn 
of bills, knowing that their 
relurn will undoubtedly have 
been preceded by a significant 

fall in tile cost of money. 

Attention earlier in the week 
centred on a shortage of funds 
caused bv payments of Petro- 
leum Revenue Tax, Around 
Elba was expected to pass 
through the system on Monday 
but this was reduced to about 
£300m and the balance contri- 
buted to a shortage on Tuesday 
of £l,I50m, This prompted the 
Bank to give help of £l,048m, 
including bills for resale total, 
ing £9S3m. Short term rates 
ended the week almost unchan- 
ged with one week interbank 
money quoted at 143 per cent. 
Longer term rates were lower 
however with three-month inter- 
bank slipping to 13 ft per cent 


from 14 per cent a week earlier. 

The fall in UK rates was 
greatly assisted by a similar 
move in U.S. interest rates. A 
string of depressing economic 
indicators, including last 4 Fri- 
day’s fall in money supply 
coincided with a reduction in 


Federal fund raising activities 
to clip over half a point from 
Euro-dollar rates. The down- 
ward march continued across 
Europe with the Belgian dis- 
count rate falling to 13 per cent 
from 14 per cent. 


WEEKLY CHANGE IN WORLD INTEREST RATES 


BANK OF ENGLAND TREASURY BILL TENDER 


Mnrch 5 Feb. 26 


] March 9 ; Feb. 29 


Bills on offer... ■ £100m [ £100m Tap accepted ! 

Total of rate of discount 12.8142? I 13.3566? 

applications £Jl6.«5m £287.90Oni Average I ' 

Total allocated.... . £10Qm j £100m rate of discount: 12.4972? 13.2862? 

Minimum Average yield ] 12.90? 1 13.74? 

accepted bid £96.8B . £96.67 Amount on offer i ; 

Allotment at i I . at next tender...; £100m • £lOOm 


LONDON 
Base rates 
7 day Interbank 
3 mth Interbank 
Treasury Bill Tender 
Band 1 Bills 
Band 2 Bills 
Band 3 Bills 
3 Mth. Treasury Bills 
1 Mth. Bank Bills 
3 Mth. Sank Sills 

TOKYO 

One month Sills 
Three month Bills 

BRUSSELS 
One month 
Three month 

AMSTERDAM 
One month 
Three month 


'13 i s 

' 1318-1358 
! 12.4972 

:i368 

ism 

13rt-131 3 
12. V 1259 
13£-13£ 
(1258.12* 

I 

•6.65625 

6.53125 


■Unch'dl 


Unch'd‘ 

lunch'd; 


| — 0.0025 
I — B.0625 


NEW YORK 
Prime rates 
Federal funds 
3 mth Treasury Bills 

6 Mth. Treasury Bills 
3 Mth. C D 
FRANKFURT 
Special Lombard 
One Mth. Interbank 
Three month 

PARIS 

Intervention Rate 
1 Mth. Interbank 
Three month 
MILAN 
One month 
Three month 
DUBLIN 
One month 
Three month 


164 

144-103, 

13.10 

12.30 

13.85 


Change 
i‘Unch' d 


;Unch' d 
Unch'd 
j—0.05 

lunch’ d 
.-*• 
i" 1 * 

i 

iUnch’d 

,-U 


Allotment at i I 

mlnlmun level ... loo? i 53^; 


FT LONDON 
INTERBANK FIXING 

3 months U.S. dollars 
bid 14 i>s | offer 14 1,2 
6 months U.S. dollars 


The fixing rare? (Mar. 5) are the arith- 
metic means, rounded to the nearest 
one-aixteenth. ot the bid and offered 
rates lor SKhn quoted by the market to 
five reference banks at 11 am each 
working day. The banks ant National 
Wen minster Bank. Bank of Tokyo. 
Deutsche Bank. Banque National de 
Fans and Morgan Guaranty Trust. 


London— band 1 bills mature In up to 14 days, band 2 bins 15 to 33 days, and 
band 3 biUs 34 to 63 days. Rates quoted represent- Bank Of England buying or 
selling rates with the money market. In other centres rates are generally deposit 
rates hi the domestic money market, and their respective changes during ths 
week. " Band 4 13V13 u j>. 


LONDON MONEY RATES 


Overnight ' — 14 u 15 

2 days notice..! — — 

7 days or_ j — 1 — 

7 days notice... — ■ . 14.4 14^ 

One month I 134-13^ 134-14 

Two months..-' 13& -13v< ; 13j*-13;j 
Three months. 15i'*-i5,v ■ 13 -13 5 b 

Six months 134 £3 <n 1 I3<t 134 

Nine months..- 13 4-134 ' 13 >8 13 in 

One year.. - 13U-13& ! 1312-1558 

Two years - i — 


. 141*1414 
< 1458-14 
| 1*4-134 
15-124 
; 134-134 
| 134-134 


Local authorities end finance houses seven days* notice, others seven days fixed. Long-term local authority 
mortgage rales nominally three years 13'i por cent: four years 14 s * per cent: five years 14U per cent. 4 Bank bill rates 
in table are buying rales for prime paper. Buying rates for four-month bank bills l^h* per cent: four months trade 
bills 13*z per cent. 

Approximate selling rates for one-month Treasury bills 13V-13*u per cent: two months 12 u j*.12 7 » per cent; three 
months 12 r u-12J<; par cent. Approximate selling rate lor one-month bank bills 13^-13^ per cent; two months 12^* 
per cent and three months 124-12 , i» per cent: one-monthtrade bills 14*4 per cent; two months 14 per cent: three 
months 13*2 per cent. 

Finance Houses Bose Rates (published by the Finance Houses Association) 15 per cent from March 1 1982. 
Clearing Bank Deposit Rales for sums at seven days' nooce 11 per cent. Clearing Bank Rates for lending 134 per 
sent. Treasury Bills: Average tender rates or discount 12.4B72 per canL 

Certificates of Tax Deposits (Series 5) U per cent from March 3. Deposits withdrawn far cash 11 per cent. 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 


Canadian I , [West German i 

Dollar Dutch Guilder, 8wiss Franc | Mark Trench Franc 1 


Shortterm 

7 days' notice I 

Month j 

Throe months .. 

Six months 

One Year 


1411-1458 
145&-1415 
13V 137 2 
15 4-1 5 r* 
13rSrI3A 
15'i-13i>j 


1436-1458 
14SB-1458 
143a 1458 
1436 1458 
1438-1456 
1436-1438 


14-15 
14-15 
155s 153ft 
15ii-16* 
16-163e 
16-1638 



1378-1419 
14-14 4 
1414-1412 
1514-151* 
163* 1658 
167 8 .17l9 


Belgian Franc 

Italian Lira Convertible Japanese Yen 


174-19 12-14 t 618-638 

184-204 124-144 | 64-6*, 

19 4-204 13V1411 6,V6 r i 

1938-2014 1318-1418 ; 6^-6^ 

20-305* 1314-14U ! 636-6*1 

20*« 21i8 14 -14i> 1 64i-6h; 


SFr (financial): short-term 134-14 per cent: seven days’ nodes 13Y13 9 * percent; one-month 134-13% par cent: three months 13* u -13 u u per cent; six months 
1CV13 u i» per cent; pno-year 13%-13% par cent. 

SDR linked deposits: one-month 127 u .12 u i * per cone three month* 124-12% per cent: six months 12V13 per cent: one.year IT^u-IS 1 * per cent 

ECU linked deposits: one-month 124-12*1 per cent: three months IZ^u-l^ii per cent: six months IZUu-13*!* per cent: one-year 134t-13’ M pBr cent. 

Asian S (closing rates in Sinpapore): one-month 144-144 per cent; three months 144-144 per cent: six months 144-144 per cent: one-year 14 , 1 *-14»i» per 
cent. 'Long-term Eurodollar two years 15-154 per cent; three years 154-154 per cant: four years 154-154 per cenc hve years 154-154 per cent nominal closing 
rates. Short-term rates are call far U.S. dollars. Cnmdien dollars and Japanese yen: others two days' notice. 

The following rates were quoted lor London dollar certificates of deposit: one-month 14.20-14.30 per cent; throe months 14. 2D- 14. 30 per cent: six months 
14.10-14.20 per cent; one-year 1*. 20-14. 30 per cent. 


CURRENCIES AND GOLD 

Gold slumps 


THE DOLLAR SPOT AND FORWARD 


Gold continued its recent de- 
cline in bullion markets last 
week, falling to its worst level 
since September 1979. There 
was a slight technical rally on 
Friday but this may have been 
just a reaction to its sharp fail 
since sentiment surrounding the 
metal remained distinctly 
bearish. News of further grain 
purchases by the USSR implied 
that further amounts of gold 
were being sold to raise foreign 
currency while the continuing 
fall in the price of oil has 
obliged many Middle Eastern 
nations to unload some of their 
gold stocks. With U.S. interest 
rates still relatively high and 
the U.S. economy in recession 
it could be some time before 
gold regains its sparkle. It 
closed last week at $343$, a fall 
of $19} and touched a low point 
on Friday of S336. 

Signs of a deepening recession 
in the U.S., and a fall in U.S. 
money supply saw Euro-dollar 
rates lose ground steadily last 
week. The dollar suffered as a 
consequence although it stHi re- 
mains likely that the Federal 
authorities will take steps to 

GOLD 


ensure that interest rates do not 
fall too quickly and by doing so 
will keep a tight rein on the 
market. The dollar fell to 
DM 2.3440 against the D-mark 
from DM 2.3830 and its trade 
weighted index (Bank oE Eng- 
land) slipped to 112.2 from 
113.3. 

Sterling ended the week sur- 
prisingly strong. It was sur- 
prising since North Sea Oil was 
reduced in price by S4 a barrel 
and interest rates were generally 
half to three quarters of a point 
down on the previous week. The 
Bank of England may have 
given a steadying hand on one 
or two occasions but towards the 
end of the week the now normal 
neurosis ahead of U.S. money 
supply figures ensured that 
sterling steadily improved 
3gainst the dollar. It closed at 
S1.83S5 against $1.8215 and its 
trade weighted index was on- 
changed at 91.1. 

The Belgian franc lost ground 
with the Belgian National cut- 
ting the discount rate to 13 per 
cent and lowering short-term 
Treasury bill yields still 
further. 


March 6 spread Close One month 

UKt 1.8320-1 .8420 1.8380-1.8390 0.07-0.1 7c dis 
Ireland* 1.4S85-1.6050 1.S010-1.5030 0.70-0.60C pm 
Canada 1.2120-1-2155 1.2747-1.2150 0.1 1-0. 14c dis 
Nethlnd. 2 6690-2.5780 15720-2.5750 1 JO-1 ,20c pm 
Belgium 43.30-43.50 43J2-43J4 4- 2c pm 


4 Threa 
p.a. months 

-0.78 0.42-0.52 dis ■ 
5.18 1.88-1.68 pm 
—1-23 0.38-0. 42d is - 
5.83 3.30-3.20 pm 
0-83 11-6 pm 


Denmark 7-87S0-7.9025 7.8750-7.8850 0.75-0.S0ore dis -1-26 2.00-2_50dls -1 


Spain 

Italy 

Norway 

Franca 

Sweden 

Japan 

Austria 

Swltz. 


W. Ger. 2-3400-2.3575 2.3435-2J445 1.09-1.04pf pm 5.45 2J8-2.83 pm 

Portugal 88.90-69.35 68-90-69.20 26-9Sc dis -10.43 55-185 dr* 

Spain 102.65-103.05 102 .85-10235 par-IOc dis -0-58 18-28 dis 

Italy 1263-12884 1283-12844 54-6lira dis -5.33 16-17 dis 

5.9450-6.9750 8.9480 5.8680 OJOorepm-O.IOdls 0.10 par-0 JO dis 

5.9900-6.0375 6.0000-6.0050 O.OBcpm-O.IOdis -0.05 1 -55-1.80drs 

5 7450-5.7800 5.7450-5.7650 0.75-0. &5o re pm 1 46 2-20-2.00 pm 

233.90-235.90 233.96-234.0S 145-1.70y pm 9.10 445-4.50 pm 

16.44-16.50 16.44-1645 11-9\grp pm 7.S7 24-21 pm 


dan 5.7460-6.7800 5.7450-5.7550 0.75-0. &5ore pm 146 240-2.00 pm 

in 233.90-235.90 233.96-234.05 145-1.70y pm 9.10 445-4.50 pm ' 

iria 16.44-16.50 16.44-1645 11-9>,grp pm 7.S7 24-21 pm ! 

a. 1 .8800-1.8675 1.8605-14515 1. 53-7. 45c pm 9.66 348-3.50 pm ' 

1 UK and Ireland are quoted in U.S. currency. Forward premiums and 
discounts apply ta tha U.S. dollar and not to tho Individual currency. 


THE POUND SPOT AND FORWARD 


□ay's 

March 5 spread 


U.S. 

Canada 

Nethlnd. 

Belgium 

Danmark 

Ireland 

W. Ger. 

Portugal 

Spain 

Italy 

Norway 

Franca 

Sweden 

Japan 

Austria 

Switz. 


14320-1.8420 

24260-2.2350 

4.72-4.75 

79.40- 80.00 
14.48-14.55 

I. 2210-14260 
4.30-4.33 
128.50-127.50 

188.40- 189.40 
2320-2333 
10.91-10-98 

II. 01-11.07 

10.55v10.ss4 

429-433 

3040-30.40 

3.40- 3.43 


14380-14390 

£4290-24300 

4.72V4.7S% 

79.60- 79.70 
14.49-14.50 
14220-14230 
4.30V4.311. 

126.60- 12640 
188.75-188 95 
2327-2329 
10.94-10.ffi 
11.03-11.04 
10.56-10.57 
430-431 

X. 25-30 JO 
340-3.41 


Belgian rate is lor Convertible 
Six-month forward dollar 1.00-1 


V. Three 
One month p.a. months 

0.07-0. 17c dis -0.78 0.42-0.52dis 

0JS-0.45C dis —2.15 143-1 .33dl* 

2V1 J .c pm 6.08 S-4L pm 

5c pm-5 dis — par-10 dis 

2V3*«ore dfs —2.22 6% -8% dis 

0ffi*0.67p dis —5.98 1.67-147dis 

iWipf pm 4.52 4V3% pm 

50-ISSc dis -11.12 90-315 dis 

par-2Sc dis -0.79 70-95 dis 

1M4lire dis —6.44 35-38 dis 

Vigors dis —0.88 2V3 3 * die 

V* : jC dis -1.09 5 7 i-8 r i dis 

’i-t^ore pm 0.57 1V1 pm 

3.05-2.75y pm 8-08 7.45-7.15 pm 

19-15gro pm 6.74 38-31 pm 

ZV2>«c pm 841 5 7 (-5 9 i pm 

francs. Financial Irene 85.90-38.00. 
.10c dis. 12-month 1. 95- 2. 15c dis. 


FORWARD RATES AGAINST STERLING 

Spot 1 month 3 month 6 month 12 month 


Gom Bullion (fine ounce* 

C!o«i..._..._»...:S342*i. 343S4 (£186l=-187 |5343S«-3443i 

Opening _;S33B.339 (£184i*-184S»:i»3SUa-352 it 

Morning fixing „ £540 t£I84.933J 3347 __ 

Afternoon fixing 3342.40 (£186439) ,6346.90 


<£188 14-1883*) 
(£193-193 t*J 
(£190441) 
(£189.707; 


Spot 1 month 

Dollar 14385 1.8397 

D-Mark 4.3125 4.2862 

French Franc 11.0350 11.0450 

Swiss Franc 34050 3.380 

Japanese Yen 430.5 428A 


I. 8590 
4.1818 

II. 3903 
3.2117 
404.6 


EMS EUROPEAN CURRENCY UNIT RATES 


Krugerrand—.. 

1/2 Krugerrand.... 
1;4 Krugerrand....! 
i»1fl Krugerrand : 
Mapleicaf—.... — , 
New Sovereigns.. 
King Sovereigns.) 
Victoria Sovau- 

French 20s*. 

SO pesos Mexteoi 
100 Cor. Au6triaU 
S20 Eagles 


8338-353 <S1 91 h 198/ 

S181-182 (£981^-991 

£92-93 (£50-50 >21 

93712-381? (£20<s-21) 

5393-354 i£198-198ts) 

SB3U-B334. (X45i(-45i«) 

S9B-100 (£533;44l4) 

399-100 (£53^-5414) 

S8S-92 (£441 E -S0i 

3420Ji-4Z3!a (£238i4 230>4) 
S352339 (£180^-18214) 

$478-483 (£860-268 «?) 


i 535512-356 is 
) 5188^4-183^ 
[ 693-94 
; 838-39 
S366ls-557Vg 
88414-84*4 
8100-101 
3100-101 
983-95 
3424-486 1* 
9335-337 
I 8480-438 


(£19412-195; 

(£100.100iaJ 

<£61-Slie) 

(£203«-21 >4) 

(£195-196 la) 

(£46-4614/ 

(£5414-6514) 

«54a,-5Bi4) 

1*4512-81) 

(£a33-833Jj> 

WlBSlg-18412) 

(£28234.865 lg) 


Belgian Franc ... 44.6963 44.6728 —0-05 —0.05 ±115440 

Danish Krone ... 8.18382 8.12959 -0.66 -0.66 ±1.6428 

German D-Mark 2-41816 2.41913 4-0.04 ,+0.04 ±1.1097 

French Franc — 8.18564 6.19118 -0.07 -0.07 ±1.3743 

Dutch Guilder 2.67296 2.66262 -0.76 -0.76 ±1.5088 

Irish Punt 0.686799 0.GBS192 -0.09 -0.09 ±1.6689 

Italian Lira 1305.13 1305^3 +a02 .+0.02 ±4.1242 

Changes ere for ECU, therefore positive change denotes e 
week currency. Adjustment calculated by Financial Times. 
Steriing/ECU rate far (March 5 0-560697 

CURRENCY MOVEMENTS CURRENCY RATES 


ECU 

central 

rates 

44.6963 

8.18382 

2-41816 

6.19564 

2.67296 

0.686799 

1305.13 


Currency 
amounts 
against ECU 
March 5 


% change 
from 
centre) 
rate 


V. change 
adjusted for 
divergence 

-0.05 

- 0.66 

,+0.04 

-0.07 

-0.76 

-0.09 

.+0.02 


OTHER CURRENCIES 


Argentina Peso_.!l8.4OO10.42Of| 10.Q0O-10.GKIt 

AUCtrsliaDo!lnr~,T.7180 1.72QO ; 0.9340-0.9346 

Brazil Crjzeire...J 362.50-263.50 142.88-1«.5B 
Finland Markka..: 8.280^298 4.5100 4.5120 

Greek Orach m«_l 1M.830-11S.19S 60^fi-61i)5 
Hong Kong Dollafil0.754-10.748 5.8460-5.8500 

Iran Rial j 140.30* 8W0* 

Kuwait Dinar fKDw 0.519-0.525 0JB44-0J846 

Luxembourg Ft... 79.60-79.70 ! 43.324oj34 
Malaysia Dollar...4JZ33.4.2305 1 2.5000-2.3030 
New Zealand Dir. 2.3375-2. 341 5 1 1J716.L2725 
Saudi Arob. Rlyal 6.Z4-6.30 ] 3.4 195-3. 4205 

Singapore Dollar. 5.8545-3.0620 2.08 90-2.1010 
sth. African Rand 1.8070- 1.B08D ! 0.9830-0.9833 
UJLE. Dirham 6.71-6.77 ] 3.6715-3.6736 


Divergence 
limit % 

±115440 

±1.8428 

±1.1037 

±1.3743 

±1.5089 

±1.6689 

±4.1242 


) ftnrtrta _ f 

'Belgium ■«.«.■■■ 1 

1 n«immric 1 

I France 

'Germsny — 

I Italy 1 

' Japan j 

! Netherlands.. 

; Norway — . .. — I 
I Portugal » 

1 Spain . — — f 

‘Sweden-. — 

Switzerland u ... 
United States^. 

! Yugoslavia.-*.,.. 


Note Rates 

SO. 10-30.40 
8544.863a 
14.46.14.63 
11 . 02 - 11.12 
4.3 0-4.34 
8300-8380 
432437 
4.714.75 
10.91-11.01 
122V 129 ta 
185V184a* 
10.53-10.63 
3.40-5.44 
1.83-1,85 
94-9BS, 


t Now ana rate. * Selling rate. 


j Bonk of Morgan 
Msr, 3 i England Guaranty 
j Index Changes^ 

Sterling-... 91.1 j —32.7 

U.S. dollar. 112.2 1 4-5.0 

Canadian dollar-. 88.1 I —17.6 
Austrian eeftffling. 216.8 I *28.6 
Balaian frane...— ! 96.6 t — 0.6 

Danish kroner-- ; B4.i — 13.0 
Deutsche mark..... I 122.5 i +45.4 

Swiss franc ; isb. 4 i + los.o 

Guilder ..... ........... 11B.0 , 4-213 

French frane — , 80.0 —14.4 

Lira 55,0 I -57.7 

Yen..- 1 188.6 

Based <m trade weighted ctangee from 
wesUngtoo agresunnt December. 1971. 
Bank of England index (but average 
1976-100).. 


IBank: special 'European 
Mar. 5 l rate ! Drawing Currency 
! % , Rights j Unit 

Sterling. I — j 0.616776’ 0.560667 

M.S.S 12 J 1.13456 11.03135 

Canadian SjlG.12 1.37520 ! 1.25226 


Austria SehJ 6 V 
Belgian F„_l 13 ; 

Danish Kr ! 11 i 

D mark.._„i 71j 
Gullder„„..„i 8i s : 
French Fr,-.l 9ts; 
Lira— 19 j 

fcria) r*| 

Spanish PtsJ 8 1 
Swedish Kr. I 11 ' 
Swiss Fr.„_ 6 * 
Creek Dr'ch. ZOlg 


0.616776 
1.13456 
1.37520 
18.6760 
49 J 683 
8.95735 
2.66361 
2.91979 
6.8119Q 
1436.07 
286.054 
Unav. 

1 15.678 
6.53166 
2.10710 


, 0.560667 
1.03135 
! 1.25226 
' 16.9631 
! 44.6728 
- 8.12058 
i 2.41913 
. S.65262 
• 6.19118 
1306.43 
,842^63 
' 6.13909 
105.919 
; 5.93210 
! 1.91645 
1 62.8503 


EXCHANGE CROSS RATES _ 


Mar. 4 | Pound Sfrllngj UJ. Dollar [ Deutschem’W Japan’se Yanj FrenchFranc Swiss Franc Dutch Guild 1 - 


Italian Lira Canada Dollar Belgian Frane 


Pound Sterling 
U J. Dollar 


Deutschemnrk 
Japanese Yen 1,000 


French Frane 10 
Swiss Franc 


Dutch Guilder 
Italian Lira 1,000 


Canadian Dollar 
Belgian Franc 100 




1 Finance 

1 House 

J Deposits 

biscount 
Company Market 
Deposits Deposits 

Treasury 
Bills * 

Eligible 

Bank 

Bills* 

Trade 
Bills * 

1354 

134: 

134 

254 

134 

134 

144-1498 

144-149* 

144-144 

144 

134-14 

134 

134 

134-13as 

13 

124 

134-13* 

12^—13 

la^-iasa 

184-12™ 
IZn-lZ 4 

' n: 

- 

144 ■ 

14 

134 

r* 


FT UNIT TRUST INFORMATION SERVICE 


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BRITISH FUNDS 


Shorts” (Lives up to Five Years) 

i-WL Variable '©*.1 99^1 9JJJ13.WI 13.84 


14Ji 141 ui 
3 May 3N 


m 


Five to Fifteen Years 


Funding b* 


IN 
ZUa 
15May 15N 
ZZJul. 22Ji 








Over Fifteen Years 


71sl 

K3S5a[ — [1448 
63 I SflU.13 
14.44 
13.7b 
12.73 
13.83 


f 2 

102*4 


ApJy.OJa. 

~F.MA.N- 


1430 
13.49 

934[ 1114 
13.67 
2.99 
1248 
13.65 
1381 
2.98 
1173 
1? ti 



i 


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it? 


iTSff 


6.0 
93 
43 
29 
5.6 
7.0 

4 

92 

JjlFeti. Aug. 
7.2 

8 


May OcL Conder InL 


July Ocl 
S eflL Apr. 


H (Klinger $5 


36S | 15. 


Last 

Kf 

n*e he l 

IH 


July ANZSA1 


May Aug. 


LOANS 

Public Board and Ind. 

Agric. Mt. Spc ’59-89 (A>a 118 7.80 12.68 

iSt.Wlr-.3pc , B' — 2 &4*d 1LS1143 33.74 

US.M.C.9pc 1962... 108 3U2 a50 - 
Do. without Warms. 99 3LJ21 4. 32 — 


FINANCIALTIMES SURVEY 


APRIL 29 1982 

The Financial Times is planning to publish a survey on 
Corporate Finance in its issue of April 29 1982. The 
provisional editorial synopsis is set out below, 

INTRODUCTION There is increasing evidence to suggest 
thalthe worst of the recession is over, but it is hard to assess 
as yet how strong and durable any recovery’ will be. The 
corporate sector, especially in manufacturing, has made 
savage cuts in both phy sical capacity and manpower, in an 
effort to become more competitive. These moves helped 
liquidity in 19SI, but now industry may have problems in 
financing an upturn, even though in many cases profits 
appear to be recovering quite sharply. 

Editorial coverage will also include: 



CCIFeb. Dec. 
June Dec. 


3.8 

is 


« [ Jan. Jiriy 


July Sep. 



INDUSTRIALS (MIscel.) 




VI 

m 


W-yT 


PROFITS INVESTMENT 

BANK BORROWINGS INTERNATIONAL 
TAXATION EXPANSION 

NEW ISSUES CORPORATE 

MANAGEMENT TREASURERS 

BUYOUTS INSTITUTIONAL 

MERCHANT BANKS SHAREHOLDERS 

CORPORATE RESCUES SMALLER 

THE INDUSTRIAL COMPANIES 

RECOVERY 

Copy date; April 15 1982 

For further information and advertising rates please contact r 
Adrian Blackshaw 

Financial Times. Bracken House, 10 Cannon Street, 

London EC4P 4BY 

TW: 01-248 8000 Ex 33S9 TV! ex: 880533 PINTIM G 

The *u*e. contents and publication ditec of curvev* in the Financial 
riinfM art «uh(Mt to change at Che devrutfon of the Editor. 


rJtar. Ocl 
O ct July 


CHEMICALS, PLASTICS 


il'dCoUwfllop. 







































































































































































































































































































































































































































31 


LABOUR AND TUC PREPARE NO-PROFITS PACKAGE 


Plans for renationalisation 


BY H.INOR GOODMAN AND JOHN LLOYD 


THE LABOUR PARTY and the 
TUC seem set to agree on a 
formula for renationalisation 
which while providing compen- 
sation would prevent share- 
holders from making profits out 
of a future Labour Govern- 
ment’s buying back state assets 
sold off by the Conservatives. 

It could involve shareholders 
in substantial losses if the 
market price had risen since 
the assets were sold off by the 
present Government. 

The Labour Party home policy 
committee today will consider 
a paper, by its research depart- 
ment setting out two basic 
options for renationalisatiqn. 

Both are based on preventing 
speculative gains, rather than on 
paying the market price or on 
renationalisation without com- 
pensation. 


Left-wingers on the committee 
are expected to object to pay- 
ing compensation for previously 
publicly held assets, and to 
argue for the “no compensa- 
tion" option. 

The paper points out that 
some 3 per cent of those assets 
already sold have been bought 
by workers, a small proportion 
in City terms, but significant 
for the purchasers. 

It suggests that compensation 
paid for renationalising com- 
panies should he seen in a 
similar light to that paid for 
companies taken into public 
ownership for the first time. 

Under one scheme compensa- 
tion would be based on the 
price at ' which the shares 
were originally sold by the Tory 
Government. 

The amount of money 


required by a labour Govern- 
ment to buy back the companies 
would therefore be exactly the 
same as that raised by the 
Tories when they sold the 
assets. 

No allowance would be made 
for inflation since the original 
sale, so in real terms investors 
would lose money. 

Under tbe alternative scheme 
compensation would be based 
either on the price the share- 
holder paid for his shares or 
the average price paid at some 
p re-determined period, which- 
ever was the lower. 

The averaging would presum- 
ably come into effect if the 
price of the shares had at any 
point fallen well below the 
current price. 

The same two options will be 
presented to the TUC Economic 


Committee on Wednesday. This 
follows a preliminary discussion 
in the TUC-Labour Party 
Liaison Committee last month, 
and will go back to that com- 
mittee later this month on early 
next for approval. 

If one of these options Is 
chosen it could act as a dis- 
incentive to the City to buy 
shares in companies sold off by 
the Thatcher Government 

Bat it would mean that the 
idea of renationalisation with- 
out compensation, passed by the 
1979 Labour Party Conference 
in an attempt to frighten the 
City from buying assets sold off 
by the Tory Government, would 
be dead. < 

How to renationalise assets 
sold by the Conservatives is one 
of the most pressing issues for 
the Labour Party. It has already 
created considerable problems. 


Economy favours Howe’s strategy 


BY MAX WILKINSON, ECONOMICS CORRESPONDENT 


SIR GEOFFREY HOWE, 
Chancellor of the Exchequer, 
will present his Budget to- 
morrow against an economic 
background which appears to 
favour his strategy more than at 
any time since the election. 

Although output and employ- 
ment remain at a distressingly 
low ebb, the tides of market 
sentiment and of business 
trends now appear to be run- 
ning in bis direction. 

His strategy will turn on the 
twin poles of cutting interest 
rates and further reducing the 
inflation rate. He remains 
sternly convinced that this is 
the best way to help industry, 
and that any substantial re- 
flation would result only in a 
temporary illusion of growth. 

He is therefore likely to an- 
nounce only a limited “give 
away" of between £lbn and 
£1.5bn concentrated on help to 
industry, and a small reduction 
in the real burden of taxes, 
with a target for public borrow- 
ing of about £9.5bn. 


His strategy has been helped 
recently by: 

• The cut in oil prices. This 
should help to keep down prices 
and give a mild stimulus to 
industrial growth; although tax 
revenues will be reduced. 

• The strength of sterling. The 
pound has kept its value un- 
expectedly well in the face of 
the oil price cut so far. If this 
continued it would help in the 
fight against inflation and allow 
more scope for catting interest 
rates. ■ 

• The annual inflation rate, 
which was 12 per cent in 
January and is widely expected 
to fall during the next few 
months. Some analysts are now 
predicting single figure Inflation 
by the end of the year. 

• Interest rates were falling 
steadily in the money markets 
last week and the price of gilt 
edged stocks were rising. The 
Bank of England had to re- 
strain the markets’ enthusiasm. 
Even so, cuts in bank base rates 


and in mortgage rates are 
generally expected this week. 

• This year’s borrowing is well 
under control and could under- 
shoot the £10.5bn target by 
quite a wide margin. 

Against this, a black cloud 
remains over the unemployment 
figure which is 3m (unadjusted) 
and still rising, although the 
rate of increase has been 
moderating- 

industrial production also fell 
quite sharply at the end of 
1981. But a resumption of 
growth is generally expected in 
the late spring. 

The Government's Medium 
Term Financial Strategy last 
Starch envisaged that public 
borrowing for 1982-83 should 
be about 31 per -cent of output, 
which works out at a little over 
£9bn. Howe'er, the MTFS 
stresses that these figures were 
not intended to be targets, and 
the City would not be at all dis- 
concerted if borrowing for next 
year were to be pitched at up 
to £10bn. 


probably be raised by less than 
the full 55p implied by in- 


Financial 
director 
of BA 
to leave 


BY JOHN LLOYD, LABOUR EDITOR 


By John Elliott, Industrial Editor 


MR ROGER MOSS, the finance 
director of British Airways, has 
been put on a month's leave and 
will soon be leaving the airline. 

He was given the news of bis 
pending departure on Thurs- 
day by Sir John King, part-time 
chairman of British Airways, 
who is also chairman of 
Babcock and Wilcox. 

A day later, British Airways’ 
board studied a report on the 
airline's financial problems pre- 
pared by Price Waterhouse, the 
financial consultants. It is 
believed to recommend that a 
major reconstruction of the 
finances wil be necessary before 
the Government can go ahead 
with its proposed sale to the 
private sector. 

Mr Moss, 46, has been finance 
director of BA for the past two- 
and-a-half years and has been 
a member of its executive 
management board. 

But he was' not a full board 
member with overall responsi- 
bility for the airline's financial 
affairs, even though he attended 
board meetings. That respon- 
sibility has been carried by Mr 
Roy Watts, chief executive, who 
was Mr Moss's predecessor as 
finance director. 

Last night, Mr Moss said: “I 


A DECISION by Equity, the 
30, 000-strong actors' trade 
union, to apply for state funds 
for postal ballots will crack the 
unity the TUC is trying to pre- 
serve against the forthcoming 
employment legislation. It lays 
the union open to expulsion 
from the TUC. 

Last month, the TUC General 
Council unanimously approved 
an eight-point programme to 
make the legislation unwork- 
able. It included forbidding 
unions to apply for state funds 
for ballots, available under the 
1980 Employment Aat 

Tbe TUC has been opposed to 
unions applying for ballot 
money for the past year. The 
specific ban, however, carrying 
the threat of suspension or 
expulsion if it is defied, is yet 
to be endorsed by the special 
conference of union executives 
to be held on April 5. 

Equity’s decision was taken 
in January by its 63-strong 


decision-making general coun- 
cil. It is unlikely to stimulate 
a rash of applications from 
other unions. 

The major union which had 
considered applying for funds, 
the Amalgamated Union of 
Engineering Workers, changed 
its position after a vote by Hs 
national committee against an 
executive proposal to do so last 
year. 

Tbe ATJEW. with other 
unions, now believes that the 
Employment Bill represents a 
grave threat to union organisa- 
tion and must be opposed by 
united action. 

Mr Terry Duffy, the AUEW 
president, said last night the 
executive was committed not to 
apply for funds. It would oppose 
any move by others in the 
union to do so. 

Mr Peter Plouviez, Equity's 
general secretary, said yesterday 
the funds for which the union 
applied would cover costs of 
postal ballots for its general 


Continued from Page 1 

Power-sharing 


have not had the opportunity 
of see ins the Price Waterhouse 


of seeing the Price Waterhouse 
Report, and the suggestion that 
I should go on leave pending 
leaving the airline was made 
the day before the board con- 
sidered the report.” 

The airline said Mr Moss 
would leave “on a date to be 
announced." In the meantime, 
Mr Stephen Wilcox, director of 
economic development, would 
be responsible for financial 
matters. 

Sir John became BA’s chair- 
man at the beginning of last 
year with the twin task of solv- 
-ing the airline’s financial prob- 
lems and preparing it for sale 
to tbe private sector. 

Three months ago. Sir Peter 
Parker, chairman of British 
Rail left the airline’s board 
after a ten-year period as a 
part-time director. It is under- 
stood that Sir Peter did not 
ask to be reappointed. 


relevant to other regions of the 
Republic. 

The report comes as the 
Government is encouraging a 
national debate about a new 
South African constitution. 

It has appeared only a week 
after the National Party was 
split on the issue of “power 
sharing." by which the Govern- 
ment means tbe future role of 
the Coloured and Asian com- 
munities — not the black 
majority — in the national 
system of government. 

The Government’s own Presi- 
dent’s council has been investi- 
gating these constitutional 
issues and will produce recom- 
mendations for publication in 
mid-May. Mr P. W. Botha, the 
Prime Minister, will then have 
to decide whether to press 
ahead with some sort of repre- 
! sentation for Coloureds and 
Asians in parliament. 

Such a move would be fiercely 
contested by the right-wing; 
both inside and outside his 
party. 


The Buthelezi Commission 
offers a dramatically different 
alternative. It rejects tbe 
Government’s system by which 
the blacks are expected to 
satisfy themselves with self- 
rule in the homeland states such 
as Kwazulu, and describes a 
system of regional inter- 
dependence for Kwazulu with 
NataL 

It opts for a non-racial 
government with guaranteed 
representation and rights for 
minorities. 

• Mr F. W. de Klerk, South 
Africa’s Mineral and Energy 
Affairs Minister, was yesterday 
elected to the powerful post 
of leader of the Transvaal 
Provincial National Party in 
succession to the recently 
expelled Mr Andrie Treumcht. 

Mr de Klerk’s election by 
Unanimous vote followed a 
dramatic split during the past 
two weeks which has seen 
former Munster Dr Treamicht 
and 15 other MFs expelled from 
the governing National Party. 


Continued from Page 1 

Spending 


freely conceding that the 1983 
budget will be drastically re- 
vised by Congress. 

.Some ha'e sugggested the 
President may have to retreat 
from his uncompromising 
opposition to reductions in 
defence spending. However 
he would “ fight to the limit " 
any attack oo the programme 
of personal tax cuts, culminat- 
ing in the controversial 10 
per cent cat planned for July, 

1983. 


Telephone equipment talks continued from page i 

tVioif Two in wral relenHnnp nptwnrk' 


rival Japanese company which. Government insistence 


nvcu / ** — - - — - - — - .. 

already owns a UK television foreign telecommunications 
plant was chosen to supply the companies allowed to sell in the 

ii T mr ntta. m me fitrm ref r«WO- 


picUJU vYOa U‘UkK.ii w huv y r - — r- — . , 

Pott Office with trial samples UK offer some form of recrpro- 
of a new low-cost facsimile- city. In practice this means 
machine. agreeing to make locally or to 

, . .. assist British makers to gam 

Matsushita has said it would ^er access to foreign markets. 
» prepared to team up with The British exchange which 
British partner to make the wp/! mnsiderine melons is 


be prepared to team , up with The British exchange which 
a British partner to make the nec is considering making is 
machines in the UK if the Post a version 0 f the Monarch PABX, 
Office ordered them in large by the General Electric 


numbers. , 


Company (GBC) and Plessey. 


That would conform with The exchange is adapted for 


use in rural telephone networks. 

It is thought unlikely that 
NEC will make the exchange 
in Japan. More probably the 
exchange will be produced under 
licence by one of the company’s 
numerous subsidiaries in South- 
East Asia or Latin America. 

In spite of pressures to open 
Japan’s telecommunications 
market to outsiders, few order 
have been awarded to foreign 
makers and competition among 
Japanese suppliers is intense. 


A Newsweek poll released 
on Saturday showed 70 per 
cent support for the Idea of 
postponing the tax cut It 
also showed President Rea- 
gan’s general popularity rat- 
ing to have fallen to 45 per 
cent, from 53 per cent in 
January. 

Mr Donald Regan’s wi ning , 
ness to reconsider future in- 
dexation of personal tax 
brackets is the strongest 
gesture of concern yet made 
by a senior administration 
official. However, it would 
have an impact only from 
1985 onwards and would be 
acceptable - only if it were 
clear that the additional 
revcenues would be used to 
cut budget deficits 

President Reagan lunches 
with Republican Senators to- 
morrow. • 

Although he can expect a 
critical reception, he may be 
able to exploit their disunity. 

While aQ are convinced the 
deficits need to be reduced, 
there are still major 
differences about whether it 
would be acceptable to tam- 
per with personal taxes. 


Dock strike 
threat over 
welfare 
proposals 


-ti- • - 

?'*v Ate'S* 


- v *-? .; * 


...J 


Sir Geoffrey is expected to 
go half way towards meeting 
the Confederation of British In- 
dustry’s demands by reducing 
the employers National Insur- 
ance surcharge by one point to 
2£ per cent. 

He will fully index personal 
income tax allowances. This 
will cost about £2bn, but is 
already assumed in the 
Treasury’s Budget arithmetic. 
He will probably raise some of 
the thresholds by more than 
the inflation rate. 

Excise duties are expected to 
go up, but in some cases, prob- 
ably by less than the rate of in- 
flation. Duty on spirits will 


the full 55p implied by in- 
dexation. and duties on derv 
may also escape the full in- 
crease. 

In addition, the Chancellor 
is expected to announce a num- 
ber of measures intended to 
help employment, small com- 
panies and investment in the 
inner cities. 


Equity defies TUC ban on state 
funds for postal ballots 


council and for referenda on 
chosen issues. 

It would not be required for 
ballots on industrial action 
because the general council did 
not believe in such action. 

Equity ran up <a deficit of 
about £100,000 last year. The 
deficit is likely to continue at 
that level tins year. Mr Plouviez 
said the funds required to cover 
its balloting costs would be 
about £10.000. 

Mr Plouviez, with other 
Equity officials, is understood to 
be strongly opposed to bis coun- 
cil's decision. He said, he 
believed the TUC could not move 
against the union until after 
the April 5 conference. 

On past practice the TUC will 
be reluctant to suspend or expel 
Equity. If the union continues 
on its course it will probably 
be called before the General 
Council to explain its position 
and be urged to change its posi- 
tion before moves to expel it are 
started. 


By Brian Groom, Labour Staff 

BRITAIN’S 18,000 registered 
dockers wifi be urged to stage 
a one-day unofficial strike in 
protest at plans to reorganise 
the National Dock Labour 
Board, which runs their statu- 
tory employment scheme. 

Ports belonging to the 
scheme handle four fifths of 
the country’s seaborne non- 
petroleum trade. The strike 
Mil was made at an unofficial 
weekend meeting in Glasgow 
of dockers* leaders from 
around the country. 

The unofficial leaders want 
their union, tbe Transport 
and General Workers, to con- 
vene a special meeting of its 
docks and waterways commit- 
tee to discuss the proposals. 
They plan mass meetings to 
urge a strike on the day the 
committee meets. 

The Labour Board, on 
which dockers and employees 
are equally represented, has 
put oat for consultation a 
plan to replace Its 21 sub- 
sidiary local boards with five 
regional bodies, and revise 
training and welfare. 

The unofficial leaders feel 
that dockers would suffer 
under proposals to pass re- 
sponsibility for port medical 
centres and welfare to em- 
ployers. 

Hr Bob HcSorley. Glasgow 
docks secretary of the TGWU. 
said: 1* These cats are only 
proposed at the moment, hut 
we want the nati onal com- 
mittee to discuss them and 
express its opposition. 

“If we get that meeting — 
and we will be demanding 
that we get it— we will send 
a lobby to London from all 
the ports so they know we 
axe serious, and at the same 
time we will be calling mass 
meetings asking that a 24- 
boor stoppage takes place on 
that day. ” 

■ The Labour Board plan, 
drawn up to prevent a feared 
£7m accumulated deficit 
building np by 1985, does not 
affect its statutory duties. 
However, taken with talks 
between employers and. onion 
on the labour scheme’s future. 
It has stoked up fears among 
dockers. 

The statutory scheme and 
the industry’s Aldington- 
Jones agreement together 
virtually ensure that a docker 
has a job for life, unless be 
opts for voluntary re- 
dundancy. 

41 Robin Reeves, Welsh 
Correspondent, writes: The 
Irish Government-owned* B & 
I Line is expected to bring 
its daily Dublin-Holyhead ser- 
vice Into operation . today 
despite the Holyhead dockers’ 
refusal to co-operate in berth- 
ing trials at the weekend. 




A Chancellor preparing his 
Budget receives messages 
from the City, over and above 
the Stock Exchange’s -annual 
plea for lower stamp duty.. The 
present administration came lo 
power with a manifesto that 
could have been .drafted by- a 
gilt-edged broker, bat for over 
two years — through the very 
partial eyes of the bond market 
— it has looked a false prospec- 
tus as it has to those in f&e 
dole queues. But the very solid, 
rise in bond prices since "the 
beginning of this year is a vote 
of. confidence of a sort; the 
Chancellor is being, encouraged 
to stick to his guns. At the same 
time the newly subdued tone -of 
the equity markets suggests a 
loss of faith in the strength of 
economic recovery. 


Some of the debate about, 
how much room for manoeuvre 
the Chancellor has ja framing 
his fiscal strategy has concerned 
tuning so fine as to be inaudible ' 
to those without perfect pitch. 
-Whether the stimulus is- £lbn 
or £2bn makes no difference s 
anything . except . perhapr- the. 
marginal supply of gilt-edged 
stock, arid the last year has 
shown that that is not all-im- 
portant even to the gilt-edged 
market, which drifted lower for ' 
months even through the pres- 
sure of funding was quite light. 
With the private sector’s bor- 
rowing requirement, corporate 
and personal combined, now 
running at roughly twice the 
level of the PSBR. there is more- 
to worry about than tins one 
magic number. - * 

Nevertheless, the Chancellor 
will be easier ta show that his 
1982-83 borrowing requirement 
as a proportion of gross domestic 
product is not devdating.too far 1 
from the 3$ per cent forecast 
laid down in last year’s (upward 
revised) financial strategy. That 
would imply a figure of jtist 
below £9bn. and' it seems' certain 
that tbe actual forecast will be 
below £10bn. The comparison 
with last year is -flattered-^-if 
the Treasury’s tax sums are 
right— by late recovery , of tax 
from the Civil Service strike,, 
tiie financ ia l cost of- the strike 
last summer and perhaps a 


siaghtly hig her level of asset 
sales this year.: \ . 

Adjusting -for ' an -this, there 
seems likely to -be a . small 
underlying increase in -the 
PSBR. which in . GPBrakttive 
terms will translate into-a sm a ll 
de clin e The other commitment 
lead -down in tbe medium-term 
financial strategy, to aff to 9 per 
cent target -for .growth, of ster- 
ling M3, is very much more 
^m<h»r7?qs ri ag ~, The .probable 
base figure for the target period, 
incorporating the usual 
generous overshoot, win become 
clear idn hour before the Budget 
with the announcement of tbe 
preliminary Fri>ruary • banking 
figures— jwfeich ought to- -be. 
relatively satisfactory. - 
• Although the money supply 
figures have lost their power to. 
enthrall the ottanriai markets, 
i there is somriihing reckless in 
the widespread view that sterl- 
ing MS . does not. matter any 
more simply because the Bank 
of England does not appear to 
•be. faking - much notice of it 
Contiraux^ excessive growth of 
the money supply — r not neces- 
sarily the sterling M3 aggregate 
—is going to. disturb the long 
bond market in the end even 
if thfr exchange rate holds 
steady and dollar interest rates 
are favourable^ ' • 

- The nature of' the small 
stimulus that the Chancellor has 
in mind may have been altered 
by. the recent fall in the off 
price, which makes a reduction 
in industrial- costs through a 
cut' an.- the National. Insurance 
surcharge less of a priority. 
There -must he -some temptation 
to channel some purchasing 
power . baric to ■ the personal 
sector/, which way squeezed 
severely last year and has some- 
thing of a monopoly on votes. 
That could mean raising income 
tax. bands by sBgbilyuinore than 
the’ Inflation; rate.- or excise 
duties by rather .less. 

‘ •T3ns ; judgment r.on indirect 
taxation, which. Ms’ direct im- 
pact on the retail price index, 
is crucial for the . Government 
Further reduction of inflation 
is absolutely necessary . if the 
Conservatives are going to have 


anything much to-boast •_ 
year from now, and iaflWW® ... 
is far more easily umwneejw • * 
in the short nm— by. financat f 
sleight-of-hand than therUara*. •• 
ployment rate can By , 

Government has aritigvgtfjftt 
budget objectives i‘-' 

few years by reducing -tittr wp- 7 
sidies to nationalised '-j 

tries and' forcing them to wise . 
their prices; the time fof*^- j 
reversal of this, process mutti* .* . ; 
approaching. . „ ■ 

TTot example, tbe very te^e . ^ 
planned increases in- dpntottm : 
gas prices are , crying: datf tb he ■ 
followed by a freeze*: soje.ta 1 
produce a fall -in tbe : ye«;flSK'. - 
year rate of inflation -a s 
from now. To engineer * (tap. ... 
in the inflation rate. too ..eattiy"'-:# 
involves the risk that- 
be drifting back - 

visibLy by. the. middle of .-IflB. 

More fundamental than naxff- . 
paiatiba of a 'few; mjmAiY .$• 
inflation figures ts the - desire • ; ; 
to massage the corporate : 

market back to life. Tpe-.tiw 
point fall in g^t-edged^efe;. ffi. 
this year, and the dipping ctf-n - 3 
toe in the- water ^ - 

Bank, have revived cnseosBtott -* - 
of the subject, and themes m .^.- 
doubt that tbe authorities 
keen to encourage the.resBsw' ..t-- 
ing of bank debt oil the gtouq&r-^ 
of corporate baiance-she^ dapab 
ture and overall immetBy - 
trol. The possibility: titefc;* ♦ - 
barriers may be lowerpd- - 
been canvassed, buf ; -18^ ^1-' 

removal «£ fiscal disadvaitoffij: Jt-* 
to bond issues may not by ^ 

be enough to produce a he^^.v¥ 
market.- 

Meanwhile, the Govenuwscte; 

■own. funding requirement hr nit ~ 
going to disappear. Ta^^ -;?- 
personal sector savings te-.wr.uS- ■' 




as easy as it was a year 'ags£; J '- 
and a major new puttr;«|l itesg: 
National Savings front . 

deflect inflows from • 

ing societies to an exteffpt 
would limit the scope- 
in the mortgage rate. 
Government's uncharaeterissfc"' 
abstention from the new isfe*--.. 
market has sustained the 
in gilt-edged — but a big mouth-, V- 
ful of new stocks looks as much - 
an odds-on bet for next wefifc 
as a base rate cut - •: 


“We believe 


.■ 1 


| Weather | 



UK TODAY 

RAIN spreading from West. 

Wandy in North. 

Wales, Channel Isles, Orkney 
and Shetland, NW, SW England 
and S. Scotland 
Rain. Brighter with showers, 
later. Max SC (46F). 

N, E and Central England - 
Rain. Max. 10C (5QF). . 

SE England 

Dry. Sunny intervals. Rsan 
later. Max 10C (5 OF). 

i Best of UK • 

Showers. Sunny intervals. 
Max 8C <46F). 

Outlook: Changeable. Tempera- 
tures near -normal. 


Milton Keynes 


They believe 


WORU>WtD£ 


in us. 


AJaccta. S 
Algiers S 
Amadm. S 
Athens R 
Bahrain 
Berdna. 
Beirut S 
Belfast S 
Ba+grd. F 
Berlin S 
Biarritz C 
Bmghm. C 
Blackpl. C 
Bordx. R 
Boulgn. S 
Snwol C 
Brussels S 
Bud pat. S 
Cairo S 
Cardiff C 
Cas’b’ca F 
Cape T. S 
Cfucg.t 
Cologne F 
Cpnhgn. S 
Corfu R 

Denvart S 
Debtor S 
Dbrvnk. S 
Edirbgh. S 
Faro S 

Florence C 
Frankft. S 
Funchal F 
Geneva . F 
Glbrttr. F 
Gl'ag'w S 
G’nraey C 
Helsinki C 
H. Kong R 
Innsbrk. F 
Invmss. . S 
l.o. Man S 
Istanbul C 
Jersey C 
Jp'burg 
L Pima. F 
Lisbon S 
Locarno C 
London ST 


L Ang-t C 
LuxTTtbg. S 
Luxor S 
Madrid S 
Majorca F 
Malaga S 
Malta - C 
fcTehMr • C 

Melbne 
Mx. C.t 
Miamit - 
Milan C 
Montrf.t Sn- 
Moscow Srt- 

Murrlch F 

Nairobi F 

Naples . F • 
Nassau. 
Nwcstl, F 
N Yorict • 
Nice • F 
Nicosia S 
Oporto S . 
Oslo C 
Peria. S 

Perth S 
Prague S 
ftykjvk. C 
Rhode* S 
Rid J'ot 
Rome r 
Salzsbrg S 
S'clscOt C 
S. Mrfc. 
Singepr. F 
S’tiagot 
Btekhm. -F 
Strasbg. S 
Sydney 
Tangier 5 
Tel Aviv 
Tenerife S 
Tokyo C 
Tr'ntot C - 
Tunis F 
Valencia S 
Venice C 
Vienna . S 
Warsaw 8 - 
Zurich - S 


That’s why 


we’re getting 


on so 



O^Cloudy. F — Fair. Fg— Fog. ft— Hail, 
R— Rein. S— Sunny^ SI— UMt ' ■ 
Srr— Snow. T — Thunder. - 
t Noon GMT temperatures,/